RESERVOIR LINK (RL)

Sector: Energy (Energy Infrastructure, Equipment & Services)

Analysed on 17/10/2021

In line with the rally of oil price, RL managed to break its downtrend on August 2021. RL traded at RM 0.625 on last Friday with immediate resistance and support at RM 0.65 and RM 0.58 respectively. The formation of higher high and higher low provides an indication that RL is on uptrend. Both EMA25 and EMA50 are trending upward as well. RL may potentially breakout from its resistance if the rally on the oil price is continued. Tentatively, there is no sign of retracement on oil price as demand has picked up with the recovery from the COVID-19 pandemic and there is a further boost from power generators who have been turning away from expensive gas and coal to fuel oil and diesel. However, investors shall monitor closely on the movement of oil price. Considering current price level, it is 3.85% gain and 7.2% loss to hit resistance at RM0.65 and support at RM0.58 respectively.

Reason to monitor: Potential Resistance Breakout

Follow our FB and telegram channel for more investing and trading analysis. Share it out to your friends and families!

TELEGRAM ：https://t.me/nottinvest

FB PAGE ：https://www.facebook.com/NottInvest

 Disclaimer: 

This content by NOTT INVEST, is in no way a solicitation or offer to buy or sell securities or investment advisory services. 

Readers should always seek the advice of an appropriately qualified professional and perform due diligence before making any investment decisions. 

We shall not be liable for any errors or inaccuracies, regardless of cause.