YTLPower- developed a leak

YTLPower broke its intermediate uptrend line at RM2.30 in February. Today, it is testing its strong horizontal support at RM2.05. This & the next horizontal support at RM1.95 could provide a good support for the base-building process for this stock. We can see from the monthly chart that the RM1.95 is also the support for the long-term uptrend line.


Chart 1: YTLPower's weekly chart as at July 21, 2011_12.30pm (Source: Quickcharts)



Chart 2: YTLPower's monthly chart as at July 1, 2011_plotted on log scale (Source: Tradesignum)

YTLPower, like the other IPPs, could be under selling pressure due to heavy political pressure to re-examine the PPAs signed by IPPs & Tenaga in 1990's. It is reported that YTLPower enjoys very favorable terms under the PPA & a restructuring of this PPA will have severe impact on YTLPower's bottom-line.

Notwithstanding the foregoing, I believe that YTLPower is likely to stay above its long-term uptrend line and as such, it could present a good buying opportunity for those with a long-term view.