TSH: Breaking higher.

TSH continues to outperform the benchmark FBM KLCI since starting its strong run in mid-2010. In fact, it is one of the star performers within the plantation sector in the past one year. It broke above the 5-month resistance level and the upward movement should extend further if the stock can close above its 2007 high. A close back below the September-low of RM2.76 will change the currently positive technical picture. Last week’s breakout confirmed that the level is an important bottom for the longer-term uptrend, as the weekly RSI is now at the most overbought level since the 2010 low. Should this critical bottom be violated, support is expected at the prior lows of RM2.65 and RM2.28, both of which are Fibonacci levels of the 2010-2011 rally.