Monday, December 03, 2007

Tenaga rebounding...

Tenaga is currently enjoying a typical clearing rally from an oversold low. A rally that is fast, furious & prone to failure. From the daily chart below, we can see that Tenaga's downtrend accelerated in July. This immediate downtrend was broken on Friday on big volume. The rally, which continued today, has managed to surpass a few horizontal resistance to hit RM10.00 at the end of the morning session. Can this rally continue further & challenge the next downtrend line resistance at RM10.60? I think this is not a very likely scenario. I believe that a correction might set in & the stock may then consolidate its recent price gain before advancing further. Those who missed out on this stock can add to their position in such a correction.

Chart: Tenaga' daily chart as at November 30 (courtesy of Quickcharts)

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