Genting Malaysia's (GENM) share price violated the downward trend channel on Tuesday, with a breakout above its resistance at RM3.50. The technical picture is fast improving, along with the MACD that has just intersected the zero-line from below. The MACD histogram is also expanding - an indication that buying momentum is picking up while the RSI has hooked up, indicating that the short term relative strength is turning stronger. Risk takers may start to nibble now while others should wait for a push above RM3.59, its 100-day SMA, before going long. A successful breach above the 100-day SMA will then provide us with further upside targets of RM3.70 and RM3.85. Meanwhile the immediate support levels can be found at RM3.48/50 and further down, RM3.30/25.          

On the weekly chart, Genting Malaysia's share price has rebounded from its trend line that extends as far back as mid-2010. Although the upward momentum appears to be weakening over this two year time frame,  we  reckon  that  GENM  may  still  have  some  upsides  left.  The MACD-Signal line has just managed a positive crossover while the RSI is seen moving higher towards the 50-mark. The Stochastics oscillator has also emerged from oversold levels, indicating the beginning of a short term up-cycle. Support is capped at RM3.30 while upside resistance is likely to present itself at RM3.80-RM4.00.

Source: Kenanga