ENGTEX recently underwent a consolidation phase, shedding 5 sen or 4.4% to hover just above its multi-month psychological support level of RM1.06 (S1). Key indicators are relatively bearish, with Stochastic and RSI trending south strongly. Despite that, the Stochastic indicator had already entered oversold region, implying that the share price could bottom out soon. Thus we view that strong buying support could emerge at the S1 level. The ability to stay above the S1 level as well as a reversal sign in the Stochastic indicator shall be the key signal to buy into the stock for interested traders.

Source: Kenanga