EG Industries’ buying momentum is back after it broke out of the 3-month downward channel with a long white candle yesterday. As the 20-day and 50-day EMAs are converging now and likely to confirm a bullish crossover soon, the stock looks positive in the near term. A bullish bias may emerge above the RM1.47 level, with stop-loss set at RM1.38, below the 50-day EMA. Towards the upside, near-term resistance level is seen at RM1.70, followed by RM1.80.

Entry : RM1.47–1.54

Target : RM1.70, RM1.80

Exit : RM1.38

Source: AmInvest Research - 18 Oct 2023