ENGKAH has been on a freefall since hitting its all-time high of RM3.75 last year. Recently ENGKAH announced an uninspiring set of 1Q14 results, reporting a net profit of RM1.39m (-26.3% YoY). Weighed down by the poor results, ENGKAH dipped further into the red by 10 sen (-4.03%) to close at RM2.38 yesterday. Technical-wise, ENGKAH has broken down from its strong support level of RM2.44. Bearish trend is imminent as the share price is now trending below all key moving averages. All key indicators are hooking downwards, reinforcing the negative view moving forward. All in, we are negative on the outlook, while expecting the stock to retest its support level of RM2.35. A ‘trading sell’ call is in order, suggesting traders to re-look the stock at a better price opportunity.

 

Source: Kenanga