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Thursday, March 16, 2017

Gamuda: Next Upleg Could Be Starting Now

Gamuda broke above its recent high of RM5.06-5.07 to touch an intra-day high of RM5.17. This reaffirm the earlier hesitant breakout of the psychological RM5.00 mark and could well signal the continuation of Gamuda's prior uptrend.

Based on a 1-to-1 extension of the August 2016 retracement of RM1.50 (computed by deducting the low of RM3.50 from the preceding high of RM5.00), the target for this upleg would be RM6.50 (by adding RM1.50 to the breakout level of RM5.00).


Chart 1: Gamuda's daily chart as at Mar 16, 2017 (Source: MalaysiaStock.Biz)


Chart 2: Gamuda's weekly chart as at Mar 16, 2017 (Source: MalaysiaStock.Biz)

The breakout in Gamuda share price is also reflected in the breakout of the intermediate downtredn line for Gamuda-WE at RM1.29-1.30.


Chart 3: Gamuda-WE's daily chart as at Mar 16, 2017 (Source: MalaysiaStock.Biz)

Conclusion

Based on the above technical breakout, both Gamuda & Gamuda-WE could be good trading BUYs.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

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