Yesterday, E&O rose 9 sen (+3.4%) to settle at RM2.73 with high trading volume. From a technical perspective, E&O’s share price has recently broken out from its multi-year uptrend resistance channel at RM2.44. All key indicators (MACD, Stochastic and RSI) are also hooking upwards, suggesting that bullish momentum is building up. While we do not rule out the possibility of short-term consolidation to neutralise the current overbought situation, mid and long-term uptrend of E&O remains largely intact. We believe that E&O could attract further buying interest and eventually rise towards the measurement objective of RM3.00. Meanwhile, a protective stop-loss is located at RM2.41 (3 bids below the resistance-turned-support level).

 

Source: Kenanga