KUALA LUMPUR (Jan 18): CIMB Equities Research has a technical buy on Eastern & Oriental at RM1.52 at which at which it is trading at a FY13 price-to-earnings of 13.8 times and price-to-book value of 1.2 times.
“The stock broke out of its consolidation triangle pattern yesterday on strong volume, suggesting that buying interest has started to pick up. The rally also took out its previous swing high of RM1.48 along the way,” it said.
CIMB Research said there is a good chance that prices may re-rate towards RM1.60 and RM1.72 in the near term.
“However, investors should always adopt a stop loss strategy when buying into this stock, preferably at between RM1.48-RM1.44 depending on one’s risk appetite,” it said.
The research house said the indicators for E&O share price are improving. MACD signal line has staged a positive crossover while RSI has also hooked upward.
“The stock broke out of its consolidation triangle pattern yesterday on strong volume, suggesting that buying interest has started to pick up. The rally also took out its previous swing high of RM1.48 along the way,” it said.
CIMB Research said there is a good chance that prices may re-rate towards RM1.60 and RM1.72 in the near term.
“However, investors should always adopt a stop loss strategy when buying into this stock, preferably at between RM1.48-RM1.44 depending on one’s risk appetite,” it said.
The research house said the indicators for E&O share price are improving. MACD signal line has staged a positive crossover while RSI has also hooked upward.
