Monday, August 01, 2011

E&O- looks set to continue its uptrend

In April, I posted on a bullish build-up in E&O after observing the steady buying of the then expiring warrant. Since then, this stock has moved up from RM1.30-1.40 to about RM1.50-1.60. Recently, the share has formed a pattern known as a loud-hailer formation (or an inverted triangle). If this stock can break to the upside of that formation at RM1.68, it shall continue with its prior uptrend. Then the stock may go higher, possibly challenging horizontal lines such as RM1.75, RM1.95 & RM2.10.

Based on the above, E&O could be a trading buy if it can surpass the RM1.68 resistance convincingly. (Presently, the stock is trading at RM1.68-1.69).


Chart: E&O's weekly chart as at August 1, 2011_12.10pm (Source: Quickcharts)
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14 comments:

  1. FlorenceMonday, August 01, 2011 12:31:00 PM

    Hi Alex,

    I would like to ask you about the trend of Hap sengm plantation . Is this stock under value now?

    ReplyDelete
  2. Alex LuMonday, August 01, 2011 3:05:00 PM

    Hi Florence

    HSPlant is trapped within an ascending triangle, with support at RM2.65 & resistance at RM2.78. Until it has a breakout, it is likely to move sideway.

    ReplyDelete
  3. vincentMonday, August 01, 2011 9:11:00 PM

    Hi Alex,

    Can you explain more in detail of what is the purpose of share buy back and what could be the story behind this?

    ReplyDelete
  4. benTuesday, August 02, 2011 3:04:00 PM

    Hi Alex,


    What is your view on SDRED?

    ReplyDelete
  5. FlorenceTuesday, August 02, 2011 4:17:00 PM

    Hi alex, Can I ask you to become my remisier? I try to call kenanga but they cant recognise a remisier called Alex. FYI, I have account with Kenanga now.Thanks for your help.

    ReplyDelete
  6. YeeTuesday, August 02, 2011 5:02:00 PM

    Hi Alex,

    Need your comment on Press Metal Bhd (8869)& IOIcorp (1961)

    Within 2 weeks time, both stocks dropped 20sen.

    Is this stock under value now? what is the entry/support price?

    Thank you.
    Yee

    ReplyDelete
  7. ryanTuesday, August 02, 2011 5:46:00 PM

    Alex,

    Finally the wait is all over! MNRB declared 20 cents dividend! Let's cheer.

    ReplyDelete
  8. solomonTuesday, August 02, 2011 8:30:00 PM

    Hi Alex,

    What is your insight into Farlim?

    ReplyDelete
  9. TracyVunThursday, August 04, 2011 8:34:00 AM

    Hi Alex, what is your view in Wijaya?

    ReplyDelete
  10. Alex LuMonday, August 15, 2011 8:53:00 AM

    Hi TracyVun

    Wijaya moved very strongly prior to the recent sell-off. It broke above two strong horizontal resistance which would now be strong support. They are RM0.38-0.40 & RM0.50-0.52. It hit a high of RM0.77-0.78.

    If the RM0.50-0.52 support can hold, the stock may stage a rebound to test its recent high of RM0.77-0.78. If it can clear above that level, it may hit the next resistance at RM1.00.

    the big question is why is this stock rallying now. I have no idea. Wijaya is linked to PKFZ. There may be some positive development in that industrial area.

    ReplyDelete
  11. Alex LuMonday, August 15, 2011 8:58:00 AM

    Hi solomon

    I am not familiar with Farlim. However the property scene in Penang is getting hot and Farlim may finally be getting some attention or maybe the group is about to announce some development. Sometime there is nothing on but the slightest movement in a stock may cause punters to jump in & the rumor mill may start to grind up some stories.

    Chartwise, the stock has strong support at RM0.25 & strong resistance at RM0.40.

    ReplyDelete
  12. Alex LuMonday, August 15, 2011 9:00:00 AM

    Hi ben

    I am not familiar with SDRED. The chart shows a stock which is still in its uptrend line, with support at RM0.65. Its immediate horizontal resistance is at RM0.70-0.72 & then at RM0.84-0.86.

    ReplyDelete
  13. Alex LuMonday, August 15, 2011 9:08:00 AM

    Hi vincent

    Share buyback is one way that the company can reward its shareholders, with the result being a higher share price (in a bull market) or a steady share price (in a bear market). The other is dividend payout, where the shareholders receive cash. However to carry out either one of these plans, the company must generate profit and free cash flow or it must have done so in the past.

    Share buyback is formalized price support or formalized self-generated demand for the stock. In the absence of this, the major shareholders may do the same directly or indirectly via a syndicated pool. The latter may run foul of securities laws.

    ReplyDelete
  14. Alex LuMonday, August 15, 2011 9:10:00 AM

    Hi Florence

    Please drop me a line at alexlu_kl@yahoo.com if you are looking for assistance in opening an account with kenanga.

    ReplyDelete