Eastern & Oriental Bhd - Potential Bullish Reversal Pattern# Technical Analysis: Eastern & Oriental Bhd (E&O) - Potential Bullish Reversal Pattern
Looking at the E&O chart (ID: MYX), I can see that the stock is currently trading at 0.845 MYR, up 0.030 (+3.68%). The chart shows several key technical patterns and trade setups:
## Current Position Analysis
- Trading near support at 0.845 MYR
- Open position: 2,105 shares
- Target price: 1.105 MYR (+30.18%)
- Stop loss: 0.755 MYR (-11.24%)
- Risk/Reward ratio: 2.68 (favorable)
## Technical Indicators
The price action is currently showing signs of a potential reversal, with:
1. Multiple moving averages beginning to flatten and potentially cross
2. Price testing a horizontal support zone (highlighted in blue)
3. Recent bounce from support with increased volume
## Long-Term Perspective
The chart displays a complete market cycle from 2023-2025:
- Strong uptrend through late 2023 into early 2024
- Distribution phase in March-April 2024
- Downtrend through mid-2024
- Current consolidation/potential accumulation phase
## Trading Signals
Several key sell signals were triggered at the top, with more recent buy signals appearing near support. The drawn trendlines suggest a large descending triangle that may be resolving to the upside if support holds.
## Outlook
The current setup appears to be forming a potential inverse head and shoulders pattern with:
1. Left shoulder (October-November 2024)
2. Head (December 2024-January 2025)
3. Right shoulder forming now (February-March 2025)
If price breaks above the neckline with increased volume, the measured move target of 1.10 MYR appears reasonable, aligned with the charted target price of 1.105 MYR.
