Chart 1: Digi's daily chart as at September 27, 2012_12.30pm (Source: quickcharts)
The second telco that has a breakout is Axiata. It broke above its recent high of RM6.30-6.32. It is up only 2 sen now (trading at RM6.36).
Chart 1: Digi's daily chart as at September 27, 2012_12.30pm (Source: quickcharts)
TM has yet to break above its recent high of RM6.08.
Chart 1: Digi's daily chart as at September 27, 2012_12.30pm (Source: quickcharts)
Maxis is still in a short-term downtrend line with resistance at RM6.90. At the end of the morning session, it gained 7 sen to close at RM6.87.
Chart 1: Digi's daily chart as at September 27, 2012_12.30pm (Source: quickcharts)
Based on the overall strength of the telcos (in a poor market), I believe that the breakout in Digi & Axiata is a signal that this sector is due for a move to the upside.
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Axiata, Digi, Maxis & TM.
6 comments:
Hi Alex ,
Can you comment on P&O technical outlook ?
Tx!
Digi already at PE of more than 30. Is it continuing to go up because of economic reasons? Or just sentiments?
timecom still at depressing price though.
Hi luckystock2
P&O's immediate support & resistance are at RM1.10-1.15 & RM1.30, respectively. Failure to surpass the RM1.30 mark recently is likely to be followed by a period of consolidation at the RM1.10-1.15 level.
Hi Katdog,
I have no idea. Now we know that part of the reasons could be the RM200 rebate for buying smartphone announced in the recent Budget. This could induce some consumer to buy these phones & sign up for data plan; thus boosting the top-line & bottom-line of telcos.
Hi steve
You are right. Timecom's technical readings are pretty weak. It is likely to test the horizontal-cum-psychological support of RM3.00. If this support holds, the stock would rebound. Its strong horizontal resistance is at RM3.70. On the other hand, if it breaks below the RM3.00 level, its next support is at RM2.60.
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