Equine's big price run-up

Equine is presently having a big price run-up. From last Friday's close of RM0.45, the share price moved up early & broke above its medium-term downtrend line resistance at RM0.50-52 at about 10.10 am. Could the reason for the present movement in the share price be due to a change in the shareholders in the company?

Equine's share price had a big move last year, when it rose from a low of RM0.47 in March 2007 to a high of RM5.00 in June 2007. The company has a 25%-stake in Abad Naluri, which in turn is involved in the proposed development of the Penang Global City Centre (PGCC) [go here for more details]. Since the last General Election where the Penang State Government fell into the hands of the Opposition, the outlook of Equine has been rather bleak. We will have to wait & see whether a change in the shareholders would lead to an improvement in Equine.

Chartwise, Equine's immediate horizontal resistance levels are at RM0.65, RM0.95, RM1.35 (closing of the gap) & RM1.75. It may be premature to look at any price higher than RM1.00 at this present moment. Or, maybe not.


Chart: Equine's weekly chart as at July 25th (source: Quickcharts)