UMW has been in an uptrend since its recovery from the Asian financial crisis. Its immediate uptrend line support is at RM7.30. The stock is however tracing out a short-term downtrend line since July 2006. This downtrend line was finally surpassed at the RM7.45 level on November 7. With this breakout, UMW can recommence its uptrend momentum. See the weekly chart, Chart 1 below.
Chart 1: UMW's weekly chart as at Nov 13The immediate resistance is at RM7.80, which is the high achieved in July 2006. If it can overcome this resistance, it may revisit its all-time high of RM8.70 in February & April 1997. See the monthly chart, Chart 2 below.
Chart 2: UMW's monthly chart as at Nov 13
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