KUALA LUMPUR: RHB Research Institute says Titan Chemicals Corp may see a further rally to RM1.85 and RM1.98 if momentum continues.
It said on Monday, July 12 the share price of Titan penetrated the tough RM1.14 resistance level in August 2009, but stuck near the level in a consolidation move.
In December 2009, the stock tried to launch a technical rally, hitting a high of RM1.36 in January 2010, but failed to sustain at above the RM1.35 resistance level.
Thereafter, it has been trending within RM1.14 to RM1.35 for most of the time until in early June 2010, when it kicked off a powerful rally.
The stock hit a high of RM1.74 on last Friday, July 12 before closing the week at RM1.70, with two consecutive positive candles on the chart, and marginally higher than a resistance level of RM1.68.
RHB Research said that fuelled with the upbeat short-term momentum readings and the increase in daily trading volume of late, the stock is poised to continue its rally towards the RM1.85 resistance level, and possibly rechallenging its historical high of RM1.98 soon on follow-through buying support.
"Cautiously, however, it must not ease to below the RM1.68 immediate support level in the next few sessions, as that will induce profit-taking pressure, hence fracturing the current uptrend. A lower and stronger support should be near the RM1.51 level, closer to the 10-day SMA of RM1.55," it said.
It said on Monday, July 12 the share price of Titan penetrated the tough RM1.14 resistance level in August 2009, but stuck near the level in a consolidation move.
In December 2009, the stock tried to launch a technical rally, hitting a high of RM1.36 in January 2010, but failed to sustain at above the RM1.35 resistance level.
Thereafter, it has been trending within RM1.14 to RM1.35 for most of the time until in early June 2010, when it kicked off a powerful rally.
The stock hit a high of RM1.74 on last Friday, July 12 before closing the week at RM1.70, with two consecutive positive candles on the chart, and marginally higher than a resistance level of RM1.68.
RHB Research said that fuelled with the upbeat short-term momentum readings and the increase in daily trading volume of late, the stock is poised to continue its rally towards the RM1.85 resistance level, and possibly rechallenging its historical high of RM1.98 soon on follow-through buying support.
"Cautiously, however, it must not ease to below the RM1.68 immediate support level in the next few sessions, as that will induce profit-taking pressure, hence fracturing the current uptrend. A lower and stronger support should be near the RM1.51 level, closer to the 10-day SMA of RM1.55," it said.
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