RHB Investment Bank Bhd (RHB Research) has identified Eastern & Oriental (E&O) and Sealink International as stocks with bullish prospects, citing strong technical indicators and upward momentum.
According to RHB Research, E&O is on track to sustain its bullish trajectory after breaching the RM0.97 resistance level last week. The stock closed with a significant long white candlestick, reflecting strong underlying momentum. Additionally, the 21-day simple moving average (SMA) is trending upwards, signalling a positive short-term trend. If the momentum persists, RHB Research anticipates E&O could climb towards RM1.03, with a potential further rise to RM1.10. However, a drop below the RM0.92 support level may trigger a bearish reversal.
Sealink International is also poised for further gains following a bullish breakout. The stock recorded a fresh "higher high" white candlestick on Friday, closing above the RM0.325 resistance level. RHB Research projects that the counter may advance towards RM0.35, with RM0.38 as the next target. Nonetheless, the bullish outlook would be invalidated if the stock falls below the RM0.30 support level.
RHB Research emphasises that both stocks show promising momentum but advises monitoring key support and resistance levels to gauge market sentiment effectively.
