GPacket has returned to its recent high

In mid-November last year, Green Packet (GPacket) share price broke below its immediate uptrend line at RM4.50. The share price then slid to a low of RM3.92 in late December, before recovering. Today, GPacket has gained about 30 sen to revisit its November 2006 high of RM4.90. A convincing break above the previous high of RM4.90 could mean that GPacket might continue with its prior uptrend. See Chart 1 & 2 below.


Chart 1: GPacket's daily chart as at Jan 30


Chart 2: GPacket's weekly chart as at Jan 30

On the other hand, if GPacket failed in its attempt to surpass the RM4.90 level, it might drop back to test its current uptrend line (current support at RM4.30). If this uptrend line failed to hold up the share price, GPacket might proceed to test its long-term uptrend line (current support at RM3.85/90). This scenario (see Chart 3 below) might play out if investors cannot find a reason to chase the share price higher than where it was in November last year. The catalyst for a bullish play may be there. It could be the successful bid for one of the 2 WIMAX license (but this is not likely to be anytime soon) or maybe, a substantially better result from its operation (who knows). If you feel that the price is too high for your liking, this may be your opportunity to reduce your position on this stock.


Chart: GPacket's not-so-bullish scenario