Technical Commentary
ECONBHD has formed a Breakout-Pullback-Continuation pattern above the RM0.915 level. As its price surged above the psychological level of RM1.00 last week, profit taking activities were noted and its share price traded in a volatile manner. Hence, we think that the price should be trending sideways over the near term to digest the recent short-term rally from the RM0.915 level before an uptrend re-emerges to lift its price to the previous high of RM1.22. The MACD Line is hovering above zero, while the RSI has hooked above 50. Resistances are envisaged around the RM1.13 and RM1.22 levels, while the support will be located around the RM0.915 level.
 

Strategy

Traders may accumulate around the support zone of the RM1.00 level. If the price breaches above the RM1.05 level, traders may execute further buying positions with an anticipation that the price will trade higher towards the RM1.13 and RM1.22 levels. However, if the price trips below the RM0.97 level, traders are advised to cut their positions.

Stock Information
Econpile Holdings Bhd is principally engaged in the provision of pilling and foundation services. Its piling solutions include bored piles, driven piles and jack-in-piles. Its foundation services include earth retaining systems, earthworks, substructure and basement construction works. In addition, the group is also involved in property investment, rental of machinery and sales of goods.

Source: M+ Online Research - 17 Feb 2015