TELEKOM MALAYSIA BHD

Telekom Malaysia broke out of RM3.06 on Friday. The technical charts are showing positive signs of further strength.

Firstly, the ADX value is increasing and approaching the 30 level. +DI is above the –DI indicating development of strong up trend.

The Force index is also showing pockets of strength.

RSI is starting to tick up after testing the 50 level indicating that buyers are once again stepping in again.

MACD indicator is slightly above its signal line. Price momentum is likely to continue if the MACD indicator can stay above its signal line for the next few trading days.

All bets are off if price breaks below RM2.85 level.

TM

TM technical chart is not looking pretty. The stock looks set to break RM 2.98 level and to test support at RM 2.88 which is the 61.8% Fibonacci Retracement Level.

MACD indicator just crossed below it signal line and with Dow closing down 143 points on Friday, it looks bearish for TM at this juncture.

So Monday should be good for the bears. Happy trading!