TIMECOM (OSK)

Time dotCom’s share price has to break above the recent high of RM0.745 to keep its uptrend intact. This stock is one of the stocks that have outperformed the broader market since the low of September. The high of December is well above that of November, in contrast to the flattish performance of the benchmark FBMKLCI. It is also back above 200-day MAV line, demonstrating the strength of the rebound. Note that the stock has been trading sideways in the past 10 days, likely consolidating the upward leg of Nov-Dec. Volume has shrunk during the period and can be interpreted as a positive signal for the uptrend. But the price has to break above the December high of RM0.745 soon to keep the uptrend intact, and a test of the 2011-high of RM0.95 cannot be ruled out. A close below the 2-week low of RM0.70 can be employed as a stop loss. The RM0.745 level retraces exactly 62% of the April-Sept decline. Otherwise, the longer the sideways movement extends, the higher the chances of a downward breakdown. Weakness will only be confirmed on a close below RM0.70, and any liquidation could be considered then. Support is expected at RM0.62 and then RM0.54, with both surprisingly being Fibonacci levels of the April-Sept decline and Sept-Dec rally. It has to find support at RM0.54 to keep the rally from the September-low alive.