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Ezion, Will It Stage A Strong Rebound?
Corporate Digest | 09 January 2015
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By: Robin Han
Articles (102) Profile

Recently, one of Mr Market’s focus is on oil price.

In the past 6 over months, crude oil dropped more than half from US$107 to US$47 per barrel.

Many oil sector stock also followed oil price’s plunge and dropped a lot correspondingly. However, as many of the oil sector stocks became oversold, some of the strong ones are starting to have some rebound potential.

For example, Keppel Corp rebounded from $8 to around $9, Sembcorp Marine rebounded from $2.85 to $3.30. Will other oil sector stocks also have some strong rebound potential for the next few days?

The answer is yes. One of the potential candidates is Ezion. After its bonus distribution to shareholders in early September 2014, it started dropping fast alongside that of oil price.

It dropped from $1.915 to $1.02, close to 50 percent, within a short period of 3 months. From its weekly chart, it can be seen that both the RSI and stochastic indicates that the stock is oversold and technically it may start to have some rebound activities.

From its daily chart, it can be seen that both the moving averages and MACD histogram are indicating bullish signals.

In addition, the Straits Times Index (STI) suffered a severe sell down early this week for around 110 points, but Ezion managed to hold well, this is another sign of strength.

If the price goes above the high for the past a few days, then it will also break a strong resistance trendline. It is likely to be an opportunity to buy at the momentum of breakout.

A nice rebound is likely to happen thereafter. Do take note that Ezion is still in a downtrend for the long term, this setup is aimed to catch a strong rebound, rather than a long term value appreciation.

Robin Han is a Ph.D in Department of Chemical and Biomolecular Engineering and has got a solid foundation in the financial markets.

Please click here for more information about this author.

Ezion Hldgs  -- -- --   
Business: Co develops, owns, and charters offshore assets to support the offshore energy markets. [FY17 Turnover] Liftboats (49.7%), Jack-up Rigs (39.5%), Offshore Support Logistic Services (10.8%).

Insight: Aug-18, 1H18, Co returned to the black with a net ... Read More
Keppel Corp  5.840 -0.12 -2.01%   
Business: [FY18 Turnover] Infrastructure (44.1%), offshore & marine (O&M) (31.4%), property (22.5%), investments (2%).

Insight: Apr-19, 1Q19 revenue rose 4.1% underpinned by high... Read More
Sembcorp Marine  1.200 -- --   
Business: Co is a leading global marine & offshore engineering group. [FY18 Turnover] rigs & floaters, repairs & upgrades, offshore platforms (98.8%), ship chartering (1%), others activities (0.2%).

Insight: May-19, 1Q19 revenue fell 31.3% to $810.6m due to ... Read More

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