E&O (RM1.20) : New High above 1.20
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We recommended Eastern and Oriental Bhd (E&O) as a trading buy 1 month ago when it was trading at RM0.99. Since then, it has surged 21%. The good news is that the new phase rally is just beginning.
In June, we pegged the major resistance of E&O at the RM1.20 level which was the high of June. Yesterday, the stock closed coincidentally at this very same RM1.20 level. The most important thing is that E&O made a new high of RM1.22, above the RM1.20 level. In addition, a spike in volume in the last two days suggest that there are new buyers entering the stock and a new wave of rally will begin above the RM1.20 level.
We think that there’s much more room for E&O to run. We peg the next major level of resistance at the RM1.70 level, thereby implying an immediate technical upside of 41%.
DRBHCOM (RM1.24) : New High above RM1.19
DRB-Hicom Bhd also recorded a new high above its critical resistance of RM1.19. The spike in volume and breakout above its key resistance suggest more upside ahead for this stock.
Fueling its rally is market speculation about the possible Gemas-JB double track railway job as well as its talks with Volkswagen AG about a potential assembly project. Its next major resistance is the RM1.60 level, implying a 29% immediate technical upside.
We recommended Eastern and Oriental Bhd (E&O) as a trading buy 1 month ago when it was trading at RM0.99. Since then, it has surged 21%. The good news is that the new phase rally is just beginning.
In June, we pegged the major resistance of E&O at the RM1.20 level which was the high of June. Yesterday, the stock closed coincidentally at this very same RM1.20 level. The most important thing is that E&O made a new high of RM1.22, above the RM1.20 level. In addition, a spike in volume in the last two days suggest that there are new buyers entering the stock and a new wave of rally will begin above the RM1.20 level.
We think that there’s much more room for E&O to run. We peg the next major level of resistance at the RM1.70 level, thereby implying an immediate technical upside of 41%.
DRBHCOM (RM1.24) : New High above RM1.19
DRB-Hicom Bhd also recorded a new high above its critical resistance of RM1.19. The spike in volume and breakout above its key resistance suggest more upside ahead for this stock.
Fueling its rally is market speculation about the possible Gemas-JB double track railway job as well as its talks with Volkswagen AG about a potential assembly project. Its next major resistance is the RM1.60 level, implying a 29% immediate technical upside.
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