Brief on EG Industries trading strategy
EG Industries has long lost from traders radar, although the investors like Koon Yew Yin and Fong Siling are positive towards it. Recently the RM146 million contracts secured by it has just initiate the movement thus far, we acknowledge before that the RM0.90 initiation line should be trigger and play through the level before this counters is going to rally. It’s important to recall the placement price back to last year, at RM0.80 per share, that level creates a natural resistance for the price, although the price never touch but it is useful to take as a reference.
The Moving Average of long and short is getting closer, as mentioned, the trigger price is at RM0.90, that means in order for the price to move, RM0.90 must hold, and as what showed to us lately, the price lingering around the trigger line, struggling and consolidate near the level. We would to monitor the price to stand firm above the trigger line, in order for a better rally.
However, the theme lead for EG is not so encouraging recently, long rally up to its previous high might be much challenging, the better strategy for this counter is to keep trading in a range, potentially within RM0.88 – RM1.04. There is a strong support at RM0.84, if one’s willing to cut loss if the price fail RM0.84, the risk isn’t big, it’s for about 4.5%- 5%.