HLInd broke above its long-term downtrend line resistance at RM3.70 in August. Despite the breakout, the share price did not rise much. It merely floated higher. With investors scouting around for cheap stocks, HLInd may have come under the radar & some buying may have started. The technical reading suggests that the stock may rally soon like what it did in April-November 2006. Watch out for increased volume! If that happened, the game would have started. Upside resistance can be seen at RM4.40-50, RM5.00 & RM5.80-6.00.
Chart 1: HLind's weekly chart as at Oct 19, 2009_11.00am(source: Quickcharts)From the monthly chart below, we can see that the longer-term downtrend line would act as resistance at RM5.30-40.
Chart 2: HLind's monthly chart as at Oct 19, 2009_11.00am(source: Quickcharts)
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