On Monday, TIMECOM broke out of the short term trend channel to end at RM3.46 on increased volumes. The single day 16 sen surge also saw its share price penetrating the 50- and 100-day SMAs. Indicator-wise, the MACD-Signal line has confirmed a golden crossover, which indicates a shift of momentum from bearish to bullish. Accompanied by the rising Stochastics and RSI readings, TIMECOM's technical outlook has thus improved substantially. Furthermore, as the 14-day RSI is still a fair distance from the overbought territory, we believe that the share price may still have a further upside. Traders may look to buy into the stock with an immediate target price of RM3.60/63. Meanwhile, stop-loss should be placed just below the cluster of support levels at RM3.35/30.
Source:
Kenanga