Recently, the share price of Takaful Malaysia rose steadily after breaking above its horizontal resistance at RM2.40. It is now trading at RM2.70. Takaful is reported to be close to selling a stake in its Indonesian unit to a local partner to expand its distribution network in the republic (here). This could be the reason for the ra-rating of the stock, which was the pioneer in the field of Islamic insurance but alas it was overtaken by many newcomers.
I have lined up the chrats of BIMB & Takaful below. You may note the followings:
1) BIMB's immediate resistance is at the horizontal line at RM2.40; and
2) BIMB's most recent rally was in June 2011, which was preceded by a rally in Takaful in April.
Since Takaful has broken above its horizontal resistance at RM2.40, the question to ask is whether BIMB will follow suit & break above its resistance at RM2.40. As such, it is worth to track the price movement in BIMB closely & buy once it break above the RM2.40.
Chart: BIMB & Takaful's daily chart as at March 27, 2012-10.30am (source: Quickcharts)