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A Walk in the Park with Cypark Resources Berhad (5184)

Lately, I have been searching for a company which has good profit margins, a business model which is non-conventional (i.e., not manufacturing, banking, plantation, and trading in nature), and resilient to external market shocks. I hope I have found the right company!


This week I will be looking at Cypark Resources Berhad (5184). Cypark is a company that is involved with the provision of environmental solutions. It has 4 main business segments which are:
1. Environmental engineering: Provision of nature conservation and environmental improvement services.
2. Landscaping and infrastructure: Provision of landscape services, project management services, and infrastructure development.
3. Maintenance: Provision of specialist maintenance works on leachate treatment plants, landscape services for parks, and maintenance of public amenities.
4. Green technology & renewable energy: Solar panel, biogas, biomass, waste-to-energy, and other renewable energy projects.
The business segment with…

Technical Review of Econpile Holdings Bhd (5253, 16/6/2018)

The markets have not been exciting lately, but I have an interesting stock to share. For investors who are looking for a stock to trade, I recommend Econpile Holdings Bhd (5253).  Its share price seems to be oversold and is ready for a bullish rebound.   


Based on its technical price chart, its share price started to dip at the beginning of 2018. The 30-day exponential moving average (EMA) has been its overhead resistance since early February 2018 until now. In this article, I will explore the likelihood of it breaking above its 30-day EMA overhead resistance. The 30-day exponential moving average overhead resistance could mean that this stock is in a downtrend as well. 

Pakatan Harapan, Malaysia's newly elected political party's victory in the General Elections in May 2018 had an adverse effect on its share price. Upon the opening bell of the Malaysian market on May 14, 2018, its share price gaped down 8 cents, and closed at RM .788, a decline of 22.7 cents or 22% of its share price. Prices subsequently trended to a low of RM .557, before rebounding to RM .74 on June 14, 2018. 

Chart 1: Price Chart of Econpile Holdings Bhd

Oversold Prices?
Its share price, Relative Strength Index (RSI) and moving average convergence divergence (MACD), all points to oversold prices. The strong bull bar on June 14, 2018, pulled the stock out of the oversold zone on the RSI quickly. Market participants were net buyers from 4 - 13 June, and some profit taking happened on June 14, which was expected after a notable run from RM .56 to RM .73. 

Bullish momentum to continue or consolidation ahead?
There is a high chance that the bullish momentum will continue. Insiders have accumulated the stock in early June 2018 and evidence of selling pressure has not been evident yet. Its immediate resistance of RM .75 seems to be a psychological level that this stock has to break through. 

There is a possibility that its share price may consolidate below RM .75. Support at RM .63 is the level that investors should look at. If prices move below RM .63, I would think that prices will continue to trend lower. 

Below are the key support and resistance levels which I have indicated for reference:

Key Support and Resistance Levels
Support: S1 RM .70
              S2 RM .63
              S3 RM .54

Resistance: R1 RM.75
                  R2 RM.80
                  R3 RM.94

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Lately, I have been searching for a company which has good profit margins, a business model which is non-conventional (i.e., not manufacturing, banking, plantation, and trading in nature), and resilient to external market shocks. I hope I have found the right company!


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