Market speculation that pipe makers may be the best proxy to the national water agenda has put ENGTEX on a bullish trend since last year. In fact, yesterday, ENGTEX surged 20 sen to RM1.91 to stage yet another “Pennant” breakout on the daily chart. Despite the sharp gain, we reckon that ENGTEX’s upswing still has a fair degree of distance to go. Based on the bullish chart formation, ENGTEX could potentially extend its rally towards RM2.30. Traders should look to take profit 3 bids below this targeted level at RM2.27, while employing a strict stop-loss at RM1.57 (representing 3 bids below Pennant support).

 

Source: Kenanga