Tenaga rallied after a bullish breakout

A few days ago, there were reports that Tenaga might get a tariff revision very soon. I was very skeptical about this piece of rumor as I'd heard of similar rumor more often than I like. Since I had never acted on the past rumor (fortunately), I chose not to act on this one. In addition, I thought an increase in the tariff by Tenaga would most likely be accompanied by similar increase in the price of natural gas (to be supplied by Petgas). All in all, the effect would be insignificant. Well, the market has proven today that I should have ignored all the past broken promises & just acted on the signals from the chart. See for yourself.


Chart: Tenaga's daily chart as at May 24, 2011_3.55pm (Source: Quickcharts)