Econpile: Double Bottom or Bullish Engulfing?

Econpile share price may have bottomed if these two pattern are confirmed.

News at 652pm, 2-Sep-2024

The Edge Malaysia reported that “Econpile wins RM71.2m contract for basement-related job in downtown KL”. How will the stock price react tomorrow? Let’s check the chart here.

Full details of the news here.

Based on my observation, the stock may have formed Bullish Engulfing and Double Bottom pattern. The Bullish Engulfing pattern is stronger and happened on 29-Aug and 30-Aug price reaction.

Bullish Engulfing Pattern

A Bullish Engulfing Pattern occurs when a small red (bearish) candle is followed by a larger green (bullish) candle that completely engulfs the body of the previous candle.

Looking at the chart, there is a sequence where a small red candle is followed by a larger green candle, particularly around the end of August. However, the pattern isn't extremely clear or strong.

Double Bottom Pattern

A Double Bottom pattern is a bullish reversal pattern that appears after a downtrend. It consists of two distinct lows at approximately the same level, followed by a breakout above the resistance.

The chart does show some signs of a potential Double Bottom around the same timeframe, with lows occurring in mid-August and late August.

Resistance 1: 44.5 sen

Resistance 2: 49 sen

Support 1: 36.5 sen

Support 2: 35 sen