Yesterday, with above-than-average trading volume, ENGTEX hiked 5.0 sen or 4.67% to close at RM1.07, settling above its 20-day SMA. The share price is moving away from its strong support of RM1.00, potentially forming a “doublebottom” pattern. The reversal from the downtrend is further supported by all the key indicators heading north. We believe the share price will rally towards its immediate resistance line of RM1.10 and potentially retest its recent high of RM1.23. Hence, we advocate investors who are looking to buy into the stock to wait for a highvolume breakout to confirm an uptrend resumption.

Source: Kenanga