Friday, 23 March 2012

DAILY TRADING STOCKS: Ancom Logistics, TMS


Ancom’s daily chart
Ancom’s  share price  may  rise further  if it can close above the short-term resistance level. This stock is on a longer-term uptrend as it printed a 2-year high in Nov last year. The sharp 2-month rally saw the stock peaking just below RM0.20, which was followed by a 4-month consolidation. Nonethess, its upward bias is intact as the consolidation low of RM0.135 is a retracement of about 62% of the Oct-Nov 2011 rally,  which is considered  healthy for an upward continuation.  The consolidation phase may  have  come to an end yesterday after a  trade on high volume saw the stock closing right at the 4-month resistance level. A close above this level today should confirm the breakout and a position can be considered if this happens. A breakout will prove that the high volume yesterday was attributed  to  buying activities.  The stop loss is the consolidationphase low of RM0.135, while the first target is the 2-year high of RM0.20 and a measured move based on the Oct-Nov rally could see the price touch RM0.23.  The upward bias will be nullified should the stop loss be triggered , after which look for the stock to trade sideways.  Strong support should come  in  at  the  psychological RM0.10, which is the low of 2011.

TMS’ daily chart
TMS’  share price  may trade higher if it can close above the psychological  resistance level.  The stock was  featured early last month on the possibility of it reaching a climax. It fell in due course and violated all support levels along the way, and is now back to where it was before the spike-up. Thus, the possibility of  it continuing on an uptrend is rather miniscule. However, the chances of a rebound cannot be ruled out as the recent high volume shows such intent. But this still requires a onfirmation by way of a close above  the  psychological RM0.10.  A purchase can be made if  this happens, with a stop loss on  a  close below  the  March low of RM0.085. Given the heavy downside bias, a rebound is likely to be shallow, with the first target being a Fibonacci level of the February decline at RM0.18. A strong move could see the stock hit RM0.235, the covered gap of 20 Jan that is also a Fibonacci level of the same decline. Do watch out for a false breakout above the RM0.10 resistance,  with a close below RM0.085 as  the  confirmation. The stock is likely to trade sideways if this happens.

Source: OSK188 

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