ENG- a possible trading BUY

Two days ago, Eng Teknologi Holdings Bhg ('ENG') announced that "certain major shareholders of the Company that they are currently in discussion in a corporate scheme which may lead to privatization of the Company. However, the Company has not received any definitive proposal. The Company will make the necessary announcement should there be any matter that requires an immediate disclosure."

OSK has immediately revised the fair value from RM1.73 to RM2.30 (here). From the chart below, we can see that ENG has just broken above its trading range of RM1.95. Its next resistance is at the horizontal line at RM2.15 & thereafter at RM2.40. Based on the technical breakout, ENG could be a trading BUY. The good entry is around RM2.00-2.05.


Chart: ENG's weekly chart as at July 20, 2011_10.00am (Source: Quickcharts)

Given the present uncertain market outlook & heightened risks from oversea development, you are advised to exercise careful discretion in every trading situation.