Despite a bearish market, Axiata appears to have just broken above its medium-term downtrend line at RM2.48. What could have prompted this move? There is a report in the Edge that Axiata Group Bhd is considering an offer for Millicom International Cellular SA’s assets in Cambodia and Sri Lanka, possibly bidding as much as US$500 million (RM1.77 billion) for Millicom’s stake in its Cambodian unit and US$200 million for the Sri Lankan operations (go
here).
Chart: Axiata's daily chart as at 7/7/2009 (Source: Tradesignum.com)This is the second time that I am pointing out the possibility of a bullish breakout above the medium-term downtrend line by Axiata. The
earlier call was in May but that breakout quickly fizzled out. The difference between the two calls lies in the way the downtrend line was drawn. Take a look and you will see what I mean.
1 comment:
I guess I know what you meant.
Earlier call in May was due to a breakout from SMA50 and SMA100. The uptrend was short lived but however found support at SMA100.
Looking at recent share price movement, it seems it is trying to break the downtrend line. Btw, I would say 2.60 is a safer bet.
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