Eastern & Oriental (E&O) rebounded from a slump in earlier trading session of the day to close 9 sen or 3.7% higher at RM2.54 on late buying interest. A “Bullish Engulfing” chart pattern was observed with the larger white candlestick engulfing or eclipsing the smaller black candlestick formed the previous day, suggesting that the price movement control was wrestled by the bulls from the bears. MACD indicator has bottomed and could be heading north with more support from stronger buying momentum. The positive buying momentum can be further showcased by both RSI and Stochastics indicators recovering and climbing up from the oversold region. If the buying momentum can be sustained, we expect the share price to continue its recovery trajectory on the way to the next resistance level of RM2.60 (R1) before testing MR2.82 (R2).

 

 

Source: Kenanga