Daily technical highlights – (ENGTEX, DUFU)

ENGTEX (Not Rated)

• Yesterday, ENGTEX rose 2.5 sen (+4.35%) to close at RM0.60.
• Chart-wise, the stock has broken above the 20-day SMA with a long bullish candlestick, backed by higher-than-average trading volume.
• Besides, we also noticed a positive divergence between the price and MACD, indicating a sign of bottoming. However, confirmation from price action is required to warrant a trend reversal.
• We look towards resistance levels at RM0.64 (R1) and RM0.69 (R2). Conversely, support levels can be identified at RM0.48 (S1) and RM0.43 (S2).

DUFU (Not Rated)

• DUFU gained 4.0 sen (+1.35%) to end at RM3.00 yesterday.
• Chart-wise, the stock has been trading within the rising channel and above all the key SMAs since August 2019.
• Yesterday, the stock has rebounded upon touching the support level at 20-day SMA, offering a re-entry opportunity to investors to increase their long positions.
• Should the stock head north, key resistance levels can be seen at RM3.60 (R1) and RM3.80 (R2)
• Conversely, downside supports can be identified at RM2.79 (S1) and RM2.54 (S2)

Source: Kenanga Research - 31 Oct 2019