E&O: ST Uptrend spotted

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.