E&O has just surpassed its recently reaction high at RM2.35 (denoted as 'a'). With a new 'high' and the earlier higher 'trough' (denoted as 'y') as compared to earlier 'trough' (denoted as 'x'), we can say that E&O's short-term uptrend can have started. In addition, E&O has broken above its "downtrend line" at RM2.30 in early January.
With this breakout, E&O could be a good trading BUY. A good level to get into the stock is on a pullback to RM2.35-2.40.
Chart 1: E&O's weekly chart as at Jan 12, 2015_4.30pm (Source: ShareInvestor.com)
(Note that E&O has a proposed bonus issue of 1-for-10 & free warrant issue of 1-for-5 which will go ex on Jan 20th.)
Despite all the brouhaha, the Properties index is still in an uptrend line (see chart below). However, I do not expect property developers to report stellar earning this year due to subdued consumer sentiment. The only exceptional to this bearish outlook could be Penang. Thus, the bullish breakout in E&O...
Chart 2: Properties's monthly chart as at Jan 12, 2015_4.30pm (Source: ShareInvestor.com)
Note:
In
addition to the disclaimer in the preamble to my blog, I hereby confirm
that I do not have any relevant interest in, or any interest in
the acquisition or disposal of, E&O.
2 comments:
Hi Alex,
Technically, VS is looking good.
what do you think?
Thanks
Hi lai
VS may test the psychological RM3.00 soon. I did not expect it to clear the RM2.70 in this 'bad' market.
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