Tenaga rebounding strongly

Tenaga has finally gotten its tariff revision. This revision is however intended to offset the gas price hike. As such, the impact will be very marginally and one should use the strong rebound to take profit or trim his position in this stock.

From the chart below, we can see that Tenaga is likely to face strong resistance at RM8.50-60 level (from horizontal line as well as the immediate downtrend line) & the next resistance will be at RM10.00 (from horizontal line and the next downtrend line). Given the poor sentiment, I think one should aim to sell at the RM8.50-60 level. As at 9.30 am, Tenaga is trading at RM8.25-30 level, off its high of RM8.70 as at 9.09 am).


Chart: Tenaga's daily chart as at June 5th, 2008 (source: Quickcharts)