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Thursday, March 3, 2011

TIME dotCom Bhd (RM0.74 @ 02/3/11) (OSK)

TIME dotCom has retraced to an important support situated at the 100-day MAV line. As it is portrayed in the above daily chart, since its share price started rising from the low in May 2010, the stock has been able to find a new support floor at above the 100-day MAV line. As the stock has now retraced back to this line, there may be a chance for re-entry. Nevertheless, in view of the current weakness in the broader market, there is a possibility that this rising trend at above the 100- day MAV line might be violated this time too. The 100-day MAV line is now situated at the RM0.73 level.

We have drawn a short-term downtrend line at above the 100-day MAV line so that we would know if a break above this downtrend line will signal a buy. However, a crack below the moving average line would also mean that Time dotCom is at risk of retracing to the next strong support at the 200-day MAV line, which is now trading at the RM0.63 level. Before the 200-day MAV line, there is support at the RM0.685 level, while to the upside, immediate resistance lies at the RM0.82 level, followed by the RM0.895 level.

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