Wednesday, 13 March 2013
Highlights / Stock Picks of the Day - TDM Berhad ("TDM") – Not Rated
Like a dragon that had just awoken from a prolonged slumber, TDM’s share price surged 22 sen yesterday to end at RM3.62. Trading volume was explosive, and the RM3.30-RM3.50 congestion zone was breached as a result of the bullish move. In fact, the share price has just exhibited a classic “Bollinger Squeeze” and subsequent volatility breakout, in addition to the “Golden Crossovers” by the 20-, 50-, and 100-day SMAs. Overall, the technical picture suggests that the share price may be poised for a major trend reversal, and further impetus may be drawn from the fact that TDM’s directors had been nibbling on the stock from the open market in recent weeks. The MACD appears to be supportive of a move higher, and we reckon that follow-through buying should carry the share price towards the next resistance levels at RM3.80 and possibly RM4.00 next.