ELSOFT’s share price was all smooth sailing, having doubled within merely 3 months. However, we believe the time is up for investors to take profit on the stock. From a technical perspective, the uptrend of ELSOFT is starting to stage a bearish reversal with the 20-days SMA support level just being broken yesterday. Selling pressure was not slowing down, as a bearish “Marubozu” candlestick has taken shape on the daily chart. Coupled with the waning momentum, we believe that probability of ELSOFT trending lower is high. Hence, we advised investors to take profit on ELSOFT. Immediate buying support level could be found at RM1.20 (S1).

Source: Kenanga