EA Technique (M) Berhad (KLSE: EATECH, 5259) had in last week challenged the key resistance level of 35 cents, up from the strong support level of RM0.320. To recap, EATECH was classified as a Practice Note 17 (PN17) company earlier in 2022. Notably, the company is set to complete the regularisation scheme by July as per an article by The Edge earlier. In the same article, the company also hinted at a potential win of new contracts of floating storage and offloading (FSO) vessels.

Following the uplifting trend of PN17, we see EATECH to continue to challenge the 37.0 cents and 38.5 cents resistance level before reaching a 52-weeks new high. We expect 35.0 cents to be a strong resistance-turned-support for the oil and gas company.