KUALA LUMPUR (Sept 1): AllianceDBS Research said My E.G. Services Bhd (MyEG) gapped up and that MyEG had on Aug 30 gapped up to cross over the RM2.21 hurdle.

In its evening edition Tuesday, the research house said the stock subsequently reached a high of RM2.23 before closing at RM2.19 (up 12 sen or 5.79%).

It said MyEG continued to trade above the 20-day and 50-day moving average lines.

“The upside gap indicated the urgency to establish stock position.

“Following the up close on Aug 30, the stock is likely to move higher again with immediate hurdle seen at RM2.25.

“A crossover of RM2.25 should see further price rise to the next overhead resistance zone, RM2.33 – RM2.38.

“The support is pegged at RM2.10. A fall below RM2.10 would put pressure on the stock down to the subsequent support zone, RM2.00 – RM2.03,” it said.

AllianceDBS Research said stock volume traded on Aug 30 was 30.9 million shares compared to the 3-month average volume of 6.84 million shares.

The research house said that indicators wise, the MACD was above the 9-day moving average line with the buy signal remains intact.

It said the relative strength index indicated that the stock was currently in an overbought zone.