Monday, June 6, 2011

Stock To Watch: Tenaga: More Consolidation Before Resuming Uptrend

Stock to watch – Tenaga (RM6.99 – Buy on weakness)

Tenaga: More consolidation before resuming uptrend

Tenaga surged after the green light for the long-awaited 7.2% tariff hike effective 1 June. The government also announced plans to introduce a fuel cost pass-through (FCPT) for the power sector and 1% levy on feed-in tariff for the renewable energy fund. Our institutional research has a BUY rating on Tenaga with a RM7.80 target price.

After climbing to 52-week high of RM7.21 on 1 June, prices are now reaching a level where a cluster of resistance currently resides (around RM7.20-7.40).

We see short term weakness via its negative daily indicators, which could drive prices lower to RM6.94 (38.2% FR), RM6.86 (50% FR) and RM6.77 (61.8% FR). More solid supports are found at RM6.52-6.67 levels. However, medium to long term uptrend remains bullish (based on weekly chart) following the recent strong breakout.

BUY on weakness for medium to long term upside resistance targets of RM7.21, RM7.62 (50% FR) and RM8.00 (61.8% FR).
Tenaga 06-06-2011

Weekly Tenaga: Poised To Retest The Medium Term RM8.00 Target After The Bullish Breakout
Tenaga 06-06-2011a


Source: HLeBroking

1 comment:

  1. I can see that you are putting a lot of time and effort into your chart and analysis blog.I love every single piece of information you post here.great call on this stock..
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