Gamuda broke strong horizontal support of RM2.80-85

Gamuda share price broke its strong horizontal support of RM2.80-85 after 11.00 am today. There were a few announcements to the Exchange that one of its substantially shareholder, FMR LLC has been selling its shares in the market. According to the latest announcement on May 29th, FMR LLC was still holding a 9.09%-stake in Gamuda (or, 182 million shares) as at May 23rd. From the monthly chart below, we can see that Gamuda's next horizontal supports are at RM2.30-40; RM2.00-10 and thereafter at RM1.70. Its tentative long-term uptrend line may provide support at RM1.85-90.


Chart: Gamuda's monthly chart as at May 29th, 2008 (source: Quickcharts)

Due to the aggressive selling by a substantial shareholder, it is advisable to stand aside & let the market takes its course.