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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.
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Source: Rakuten Research - 2 Apr 2024
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