Barely a month ago, we highlighted TDM when the share price broke out of a classic “Bollinger Squeeze” on high volume. The share price had since been creeping up, before news of a 22 sen dividend and a proposed bonus issue and share split sent the share price rocketing towards a 9-month high yesterday. At RM4.50, the share price is up by a decent 24% or 88 sen since our technical report on the stock dated 13th March (RM3.62). While the indicators have yet to show signs of weakening, the 14-day Stochastic and RSI indicators are deep within the overbought territory. Strong resistance has also been met at the RM4.60/65 levels, and we reckon that profit taking would likely persist at those levels. As such, perhaps it may be time to pocket some gains for now. Only a decisive breakout of the RM4.65 would trigger a renewed buy signal.

 

Source: Kenanga