ECOWLD’s share price declined by 4.0 sen (1.0%) yesterday and has been on the downtrend since June 2014, hitting lower lows. Chart-wise, there appears to be a ‘Black Marubozu’ candlestick suggesting that sellers dominated the day’s trading, while the share price is now trading below the 20-day SMA. We expect the bearish downtrend to persist until the multi-month RM3.80 (S1) Fibonacci level. Key indicators such as RSI and Stochastics are also pointing downwards currently, but and are fast approaching Oversold level, which led us to believe that it would be a good entry point for potential investors to relook at the stock.

 

 

Source: Kenanga