• Business profile. My E.G. Services Berhad is engaged in the business of development and implementation of the electronic government (E-Government) services project and the provision of other related services for the E-Government services project, as well as investment holding.
• After hitting an all-time high of RM3.07 on 23 Mar 2015, share price retraced to the strong support near RM2.47 (daily 38.2% FR and 100-d SMA). The stock is grossly oversold as substantiated by daily oscillators (RSI, MACD & Slow Stochastics) . Moreover, “Bullis h Harami Cross” candles tick pattern on daily chart s ugges ts potential reversal trajectory. Hence, we opine that share price is about to reverse the recent retracement.
• Upside target prices are located at RM2.70 (23.6% FR) and RM2.87, with a longterm price objective of RM3.07 (all-time high). However, failure to maintain above RM2.47 on any pullback will turn overall picture into negative sentiment. Supports are pegged at RM2.43 and RM2.40.

Source: Hong Leong Investment Bank Research - 16 Apr 2015