Proton poised for an upside move

Proton may have broken above its short-term downward channel yesterday at RM2.85. MACD, Williams %R & ADX indicators are all pointing to a potential move to the upside. Compare this with the downside breakout in September-October last year when Proton broke below its downward channel (with the same indicators pointing to a downside move). See Chart 1 below.


Chart 1: Proton's daily chart as at August 5, 2009 (Source: Quickchart)

The possible up-leg for Proton could send the share price to test the upper boundary of its long-term downward channel at RM5.00. See the weekly chart below.


Chart 2: Proton's weekly chart as at August 5, 2009 (Source: Quickchart)