Sarawak may have a bullish breakout

Sarawak Energy Bhd ('Sarawak') is involved in the generation & transmission of electricity in the state of Sarawak. The stock has been 'bottoming' for 4 years & it finally broke above the strong horizontal resistance of RM1.45 in December 2006. Since then, it has been consolidating in the pattern of a wedge (albeit, a bearish wedge). A break above RM1.46/47 could signal the beginning of its next upleg move. Watch out for this breakout.


Chart 1: Sarawak's monthly chart as at October 4 (courtesy of Quickcharts)



Chart : Sarawak's weekly chart as at October 4 (courtesy of Quickcharts)