Wednesday, April 8, 2009

Telekom Malaysia Berhad


Global stock markets pullback this week after a spectacular rally in March that saw majority of the world indexes up with double digit percentage gains. KLCI went from a low of 836 on 12 Mar to a high of 926 on 6 Apr, a gain of 10%. Investors that missed out on this rally can consider picking up counters during the pullback.

Let’s look at Telekom Malaysia which made a bullish MACD crossover yesterday. The counter gapped up on 25 Feb with high volume. The MACD indicator made a bullish crossover and is now above its 9 day signal line. RSI is approaching overbought levels suggesting that the stock may pullback anytime soon. However with the MACD showing a bullish signal and the current +DI above the –DI with ADX above 40, pullback should be mild and not a severe downswing.

Resistance level is at RM3.68 and RM3.76 respectively. Support level is at RM3.46 and RM3.38.

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