• Technical BUY on breakout with +22.1% potential return
• Last price: RM0.79
• Target price: RM0.915, RM0.995
• Support: RM0.75
• Stop-loss: RM0.745

BUY on breakout with a target price of RM0.995 and stop-loss at RM0.745. ENCO’s share price has consolidated within the BBI line. It then closed above the BBI last Friday to set a new tone for the short-term outlook. We expect ENCO to continue the upwards movement once it manages to penetrate the breakout level of RM0.815. The bullish bias has been established following an uptick in the DMI. We peg our targets at RM0.915 and RM0.995 in near term.

Expected Timeframe: 2 weeks to 2 months.

Source: UOB Kay Hian Research - 23 Oct 2017