• For the technical pick referring to the O&G comparison table, our stock selection criteria is based on the “bullish” outlook over the next 2-4 weeks period, coupled with the risk less of than ten percent from the five-day low position. We anticipate that most of the O&G stocks will have trading activities picking up over the near term given the bullish bias in crude oil prices.

• Among the O&G stocks, we like EATECH as a potential short-term trading idea as it has formed several higher highs and higher lows over the past month. With the share price experienced a flag formation breakout with increased volumes, investors may take this as an opportunity to accumulate around the RM0.64-RM0.66 levels to enjoy a lower risk entry.

• We expect buying interest to emerge and the price to rally towards the RM0.695, RM0.77 and RM0.825 levels.

• Support will be pegged around the RM0.615 and RM0.63 levels, while cut loss shall be initiated once the price falls below the RM0.61 level.

Source: Hong Leong Investment Bank Research - 6 Jan 2017