Eastern & Oriental Bhd (E&O, 3417)

• Share price has surged 79% since our last technical buy call on 22 Dec 2023.

• E&O may extend its upward trajectory after breaking out from its one-week rectangular patternyesterday. In view of the stock hitting a new 52-week high with a second consecutive white candles, thus signalling a continuation of the ongoing uptrend.

• We expect the rising momentum to steer the stock higher and test the next level of resistance ofRM1.15 (R1) and RM1.25 (R2) in the near term.

• On the downside, stop-loss is set at RM0.92, below the 20-day EMA.

• Fundamentally, we like E&O as it stands to benefit from the Penang LRT project. With recent cabinetapproval and slated for completion by 2030, the LRT project is poised to enhance Penang's connectivity and uplift property sentiment.
  

Source: Rakuten Research - 2 Apr 2024

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