Sector: Technology

Analysed on 27/11/21

ELSOFT attempted to break the resistance at RM1.020 this week however experienced sell down on Thursday and Friday due to the weak market sentiment arisen from the new COVID 19 variant found in Africa. ELSOFT is currently at RM0.950, which is exactly on the EMA50, with immediate resistance at RM1.020.

EMA25 and EMA50 have began to flatten showing that the current momentum is weak. Looking through the QR released recently, ELSOFT has reported a strong earning as a result of improved order book. As ELSOFT is currently trading at PE of 313, which is relatively high compared with the peers, ELSOFT would have to report improved QR in the coming quarters to justify the current valuation. Investor who is interested in ELSOFT can consider to open position when there is sign of reversal.

Reason to Monitor: Retrace to EMA50/ Good Prospect

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