Tenaga: Testing Its Downtrend Line

Last month, I posted about the breakdown of the technical outlook for Tenaga. Tenaga appeared to have violated the neckline at RM13.55 of a head & shoulders formation, a reliable reversal pattern which should lead to Tenaga entering into a downtrend.

Two things we must take note of after that breakdown:
1. There was no increased in the volume of trading in Tenaga after the breakdown of the neckline
2. After a few days, Tenaga recovered back to around RM13.50 where it has remained ever since.

This week we saw more volatility in the trading of Tenaga leading up to the share price testing the 25-day SMA line at RM13.70. Yesterday, Tenaga tested the intermediate downtrend line, RR at RM13.80 but closed back below the line (at RM13.70). This morning it again tested the downtrend line and went as high as RM13.84. An upside breakout of the intermediate downtrend line could signal the beginning of the next upleg in Tenaga.

Based on the above, Tenaga is worth close monitoring.


Chart: Tenaga's daily chart as at Mar 8, 2017_12.00pm (Source: MalaysiaStock.Biz)

Based on technical breakout, Taliwrk could be a good trading BUY.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.