ENGTEX’s uptrending technical picture became firmer after the share price surged 7 sen to close at RM1.69 as the market speculated on positive development regarding its proposed RM1.2b Langat 2 water treatment plant project. Technically speaking, the chart has established a bullish “Dragonfly-Doji” candlestick, indicating that a bullish rally could be in the making. In fact, given its short-term oversold Stochastic reading, we suspect the share price may potentially rebound from the bottom and advance further to re-test overhead resistance @RM1.78 (previous high). Beyond that, a breakout above the resistance may initiate resumption of the previous uptrend towards psychological resistance and Fibonacci resistance @RM2.00. Meanwhile, for trading purpose, a protective short-term downside support is pegged at RM1.58. 

 

Source: Kenanga