E&O is in the limelight after the DOE’s approval on the proposed land reclamation of Phase 2 of Seri Tanjung Pinang at Tanjung Tokong, Penang. GDV of this project is estimated at RM25.0b. Yesterday, E&O surged 21 sen (+9.33%) to settle at RM2.46 with strong trading volume. The share price has gapped up to break out from its multi-year resistance level of RM2.41. Key momentum indicators (MACD and RSI) also hooked upwards, supporting our bullish view ahead. Should follow through buying continue, we reckon E&O could extend towards RM2.62 and possibly RM2.82 next. Meanwhile, traders should employ a strict stop loss 3 bids below its new resistance-turned-support level of RM2.41at RM2.38.

 

Source: Kenanga