Tenaga is still standing

The latest news on Tenaga is that it has proposed to the Government that "(power) generators be allowed to raise tariffs to pass on higher natural gas costs caused by the gradual removal of subsidies (on natural gas)". This piece of "news" has caused the share price of Tenaga to tumble down to its recent lows of around RM9.30.

Technical analysts will be watching Tenaga closely to see whether the RM9.30 level can sustain. Here, we must bear in mind that a stock that refuses to go down after a barrage of bad news is signaling that it is in fact bottoming out & maybe poised to recover. If a recovery were to happen, Tenaga would have done a reversal known as a Triple Bottom. Thus, Tenaga could be a good Trading Buy at the RM9.30 level, with a STOP at RM8.90. Short-term target is RM10.00.


Chart : Tenaga's daily chart as at October 11 (courtesy of Quickcharts)