Ranhill may have a bullish breakout

Ranhill is having a very strong price run-up. As at 4.20 pm, the share price is at RM1.20 (gaining 23.5 sen from yesterday's close). From the weekly Chart 1 below, we can see that Ranhill's downtrend line resistance is at RM1.15. This means that Ranhill may have a bullish breakout, accompanied with substantial volume.

From the monthly Chart 2, we can see that Ranhill had a false breakout in February 2007 at RM1.40 level. In that breakout, Ranhill went as high as RM1.67 before pulling back below the breakout level. Is the current breakout a repeat of the February 2007 breakout? We will wait & see. One possible explanation for the current move is a re-rating of Ranhill that might have been brought on by its takeover of Ranhill Utility Bhd.


Chart 1: Ranhill's weekly chart as at July 24th (source: Quickcharts)



Chart 2: Ranhill's monthly chart as at July 24th (source: Quickcharts)