Melewar may commence its uptrend

Melewar is essentially involved in the steel manufacturing. The bulk of its business income is derived from its principal subsidiary, Mycron Steel Bhd. For details of Melewar's performance, refer to the table below.



Technical Outlook

Melewar has broken above its downtrend line in May 2006. Since then, it has been consolidating in a symmetrical triangle. Today, it has broken above that triangle at the RM1.18/20 level. Resistances can be seen at RM1.55, RM1.95 & RM2.25 (see Chart 1).

Chart 1: Melewar's weekly chart as at Jan 19

Melewar-WA, which has an exrcise price of RM1.50 & expiring on June 14, 2010, has also experienced a breakout as well as a new high (see Chart 2). This very bullish breakout for the warrant only reinforces the bullish potential of Melewar.

Chart 2: Melewar-WA's weekly chart as at Jan 19