Ecomate is set to resume its upward structure, according to the RHB Research’s technical analysis report (dated August 3), as it broke above the MYR0.595 level on Monday before mildly taking profit yesterday. Supported by the significant trading volumes during the breakout period, the bullish bias above the level is expected to bounce the stock towards MYR0.63 – yesterday’s high – before propelling towards the historical high at MYR0.69, which was 8 Nov 2021’s high. However, the stock may reverse if it falls below the MYR0.575 support, as it may form a “lower low” bearish pattern beneath the 21-day average line.
This banking group is looking to propel towards its historical high as it inched higher towards the MYR4.69 immediate resistance yesterday following the recent pullback. If it manages to break above that level, the bulls are expected to propel the stock towards the historical high marked at MYR4.79 – 4 Apr’s high – before printing a new high at MYR5. If it falls below the MYR4.59 support, the recent uptrend movement may reverse, as it forms a “lower low” bearish pattern.