Recall that we had previously revised our TP higher to RM2.00 after ECS staged a technical breakout from its rising ‘Wedge’ chart pattern. However, the share price had since undergone some sell-down due to the poorer broad market sentiment with it breaking down from the ‘Wedge’ pattern support to hit our stop-loss level of RM1.70. Outlook for the stock has turned bearish with Stochastic and RSI indicators trending south, while the MACD has also staged a bearish crossover. Despite being stopped-out, our protective stop-loss managed to secure our previous gains of 8.3% prior to the TP revision recent.

Source: Kenanga Research - 26 May 2015