ZELAN may have a bullish breakout

Zelan has dropped from its high of RM6.45 in October last year to a recent low of RM2.06 in March this year. Since then, Zelan share price has recovered quite a bit and an ascending triangle pattern is clearly visible. This pattern can be either a reversal pattern or a continuation pattern, depending on the next price breakout. If the share price can break to upside of the pattern at RM2.77, it would be a reversal pattern, i.e. the share price would go up. A break to downside at RM2.60 would mean the opposite. As at 9.30 am this morning, Zelan share price gained 10 sen to RM2.83, on volume of about 1.1 million units. From the chart, we can see that the next resistance is at RM3.00 and thereafter at RM3.36.


Chart: Zelan's daily chart as at May 8, 2008 (courtesy of Quickcharts)

For more on Zelan, check out these 2 latest articles from the Edge newsletter, i.e. Zelan making headway overseas and Zelan ripe for privatization.