Gamuda is breaking its long-term uptrend line

In our stock market, there are very few stocks that consistently move in line with the market. Gamuda is one such stock; it turned upward when market bottomed and it turned downward when market peaked. If & when Gamuda breaks its uptrend line, you better sit up & pay attention. Sadly, it did just that this morning when it broke its long-term uptrend line at RM3.60. Unless a recovery happened prompto, the uptrend for Gamuda is over. This is despite the fact that the biggest construction project in Malaysia- the MRT project with a price tag of RM40 billion- will be managed by a JV between Gamuda & MMC in their capacity as the Project Delivery Partner. The end of Gamuda, if it happened, would be another confirmation that our market is peaking & about to reverse course.


Chart: Gamuda's weekly chart as at July 19, 2011_12.10pm (Source: Quickcharts)