As depicted on the chart, MYEG is seen to be undergoing its consolidation phase for the past two months after surging to its all-time high level to form a ‘Flag’ chart pattern. Uptrend remained intact as all the SMAs are trending upwards. Key indicators, however, are still relatively flattish suggesting that the share price could continue to trade sideways further. We are placing a Trading Buy call on this stock as we view that this could be a good opportunity to enter the stock during its consolidation phase, while we anticipate a potential breakout from the ‘Flag’ chart pattern. If the share price stage a breakout, we reckon that the stock could resume its uptrend to retest its immediate resistance of RM2.77 in the near-term. Strict stop-loss is placed at RM2.37 (2 bids below its 50-day SMA level).

Source: Kenanga