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What’s next?

Posted: 12/24/2013 - 10:55 am

On December 18, we highlighted the pick-up in buying interest in Emirates NBD (ENBD) and we said that the stock offered further upside potential.

We recommended those who are willing to put up with the tight liquidity and the wide bid-ask spread that the stock usually exhibits to buy as we had expected the share price to clear the initial barrier at 5.75 and move higher (read: Still with the banks).

Interestingly enough, the breakout took place that exact same day and the stock has gained 4.3% since our call.

As the chart shows, the stock is up against an important resistance at 6.00 which represents a 5-year high. However, we assign a high probability to an upside break and expect further gains ahead.

In short, we remain long but we increase our protective stop from 5.40 to 5.70. We keep our target open at this point.

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