Thursday, September 8, 2011

RHB Research: Time dotCom to restest 59.5 sen

KUALA LUMPUR: RHB Research Institute expect Time dotCom's share price to retest the immediate resistance of 59.5 sen (61.8% FR level) in the immediate term, given a possible change in its short-term outlook.

It said on Thursday, Sept 8 it expects the share price to continue its uptrend towards the 40-day SMA (RM0.6261) (upon breaching of the 59.5 sen resistance) in the short term.

'In the event of a breakout above the 40-day SMA (RM0.6261), however, we expect the stock's price to extend its uptrend towards the next resistance of 66 sen (50% FR level). Note that the further breaching of the 66 sen resistance may turn the stock's medium-term outlook positive,' it said.

RHB Research advises investors to buy towards the 10-day SMA (RM0.544) for a short-term bet.

'While we expect the support of 53.5 sen to hold, breaching this level would reverse any positive indication by the MACD and turn the overall outlook negative. Hence, investors should cut loss if the price breaches 53.5 sen,' it said.

The research house added that at a theoretical entry price of 55.5 sen, investors would see a good risk to reward ratio given that the downside to the support of 53.5 sen is 2 sen while the upside to the immediate resistance of 59.5 sen and 62.5 sen (40- day SMA) is 4 sen and 7 sen respectively.

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