Time dotCom’s may have made a short-term bottom after the firm close yesterday. We highlighted the possibility of the stock finding its bottom last week, but the buying confirmation never came and it continued to trade lower. But buying appears to have returned after it found support at the January-low of RM0.68, despite the “Long Black” of 23 Feb. The RM0.68 support level retraced less than 38% of the Sept-Dec rally. The 200-day MAV line was just below this support and the daily RSI was at the lowest level since Sept 2011 low. The firm close yesterday, closing above the prior 3-day high, should confirm the formation of a bottom. Volume was relatively high too, showing undiminished interest. Purchases can be made above RM0.70 with a close below RM0.68 as the stop loss. The price target is the 2011-high of RM0.95, provided that the recent high of RM0.75 is violated. The trade will not work should the stop be triggered and look for the stock to trade lower. 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.
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