E&O's share price has in the past few months exhibited obvious cyclical patterns since its low of RM1.28 back in May. The series of upward swings have formed an upward sloping channel with a 15 sen trading
range. Last week, E&O formed a 'Gravestone Doji' at the channel resistance and the subsequent ownward move was well reflected on the 14-day Stochastic indicator. Coming to the end of the week, we expect E&O to continue with its downtrend towards RM1.57 where the trend line support is located. We reckon a good degree of support will be provided at this level, and traders should position themselves to buy in at this level in anticipation of the next upswing.

Source: Kenanga