Yesterday, TAS rose 10 sen (+7.35%) to RM1.46 on solid earnings report. Its 3Q14 net profit doubled YoY on the back of higher revenue on the completion and delivery of several vessels. From a technical perspective, TAS has been trapped in an uptrend channel in the range of RM1.00 to RM1.40 for the past 6 months. Yesterday’s bullish move has caused a breakout from channel resistance at RM1.44, hinting that the share is poised to enter into another round of rally. Technical indicators such as Stochastic and MACD showed that bullish momentum is picking up. We expect follow-through buying to appear, lifting the share price towards RM1.74.

 

Source: Kenanga