The share price of TIMECOM rebounded yesterday to close at RM3.63 following a “Hammer” candlestick formed during the previous session. With positive 4Q13 and FY13 earnings announced yesterday, TIMECOM could attract further buying interest, which will prompt more upside. In fact, an uptrend channel has taken shape since Sept-2011 and the MACD and Stochastic indicators also showing slight improvements. We expect TIMECOM to retest its Nov high of RM4.05 (R1). Should this resistance level be taken out, we would then expect a clear path towards the uptrend channel resistance at RM4.50. As for the downside, strong support is expected at RM3.51 (S1).

 

Source: Kenanga