Proton share price has broken above its medium-term downtrend line at the RM5.00 level in the w/e November 10, 2006 amidst news reports that the Government was contemplating selling off a stake in Proton manufacturing plant in Tanjong Malim. Since then, Proton has gained 30-35% (see Chart 1 below).
Chart 1: Proton's weekly chart as at Jan 17
What about EON?
EON's problems are just as intractable as Proton's. From Chart 2, we can see that EON has broken out of its medium-term downtrend line (bb) in the w/e August 18, 2006 at the RM2.00 level. Despite the breakout, EON has moved sideway in a bottoming-out process (where the share price has been drifting in a slightly sloping channel). Yesterday, EON broke above the upper channel at the RM2.15 level (see Chart 3). With this, I believe EON share price is likely to move higher from now on. Resistances can be seen at the RM2.60, 2.90 & 3.00 level.
Chart 2: EON's weekly chart as at Jan 17
Chart 3: EON's daily chart as at Jan 17
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