• Technical BUY on breakout with +30.3% potential return
• Last price: RM0.345
• Target price: RM0.495, RM0.585
• Support: RM0.295
• Stop-loss: RM0.29

BUY on breakout with a target price of RM0.585 and stop-loss at RM0.29. Yesterday, EES formed a bullish candlestick and exited the consolidation phase, and could break above RM0.38. The uptick in the RSI and the increase in trading volumes suggest buying momentum is set to continue in the near term. We expect the stock to penetrate the breakout level of RM0.38. Thereafter, it should continue to trend higher towards our target prices of RM0.495 and RM0.585 in the near to medium term.

Expected Timeframe: 2 weeks to 2 months

Source: UOB Kay Hian Research - 14 Jul 2017