E&O has been trading on an uptrend channel since mid-December. In tandem with the increasing trading volume, E&O has broken out from a ‘Flag’ chart pattern after consolidating from its upswing recently. Uptrend looks promising from here as the underlying trades above all its SMA level and its mean-regression line. Meanwhile, key indicators (Stochastic and RSI) are supportive of the bull with the strong uptick suggesting buying momentum is picking up. With follow through buying interest, we anticipate that the share price could potentially reverse from its recent downswing to resume its previous trend pattern towards our ‘Flagpole’ measurement objective target price of RM2.58 (which is also its 4-month historical high level).

Source: Kenanga