Stock Of The Week : TIME Engineering Bhd

Eye on stock

TIME Engineering Bhd shares recovered from the recent low of 31 sen on May 25 to a three-month high of 46 sen during intra-day session amid follow-through bargain-hunting buying momentum yesterday.

Based on the daily bar chart, prices had penetrated the mid-term bearish descending line on higher volume yesterday. Theoretically, the successful breakout will clear the way for more scaling going forward.

Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index continued to advance deeper into the bullish territory.

A similar development was also seen in the 14-day relative strength index.

After flashing a buy on June 4, the daily moving average convergence/divergence histogram continued to rise steadily, in tandem with the daily signal line.

From a technical point of view, the positive reading suggests Time Engineering has great potential to explore higher ground in the short-term.

If the bulls can overcome the relatively strong resistance of the 50 sen mark, a re-test of the previous rally peak of 59 sen, established on Nov 5, last year, can be expected.

As for the downside, solid support is pegged at the 21-day simple moving average, now resting at 38 sen and still rising.

·The comments above do not represent a recommendation to buy or sell.