ECS recently broke out from its rising ‘Wedge’ chart pattern to set its all-time high level of RM1.77. The share price has exceeded our previous TP of RM1.73 set on 24-Mar, when we issue a Trading Buy call on the back of a technical breakout from a falling ‘Wedge’ pattern. In tandem with the strong trading volume, the uptick in key momentum indicators is also posting a bullish outlook. All in, we decided to upgrade our mid-term TP to RM2.00 (R3) to ride on the bullish technical breakout. Meanwhile, our stop-loss is adjusted to RM1.70 (3 bids below its multi-month strong support level) to secure our previous gains.

Source: Kenanga Research - 20 May 2015