Tuesday, November 07, 2006

Titan has broken above its downtrend

Titan is involved in the manufacture and sales of petrochemicals products and polyolefin resins. Its latest financial results i.e. 2Q2006 (for QE30/6/2006) shows a 70.4%-drop in its net profit to RM30.3 mil, despite a 29.9%-increase in its turover to RM1.37 billion. For the first half results, its net profit increased by 63.8% to RM408.3 mil while turnover grew by 11.0% to RM2.39 billion.

What's interesting is that Titan has broken above its medium-term downtrend line at RM1.25 level last week. It is testing the immediate horizontal resistance at RM1.30/32 level now. At 3.30 p.m. today, the share was trading at RM1.31. If it can convincingly cross the RM1.30/32 level, Titan's up leg maybe on the way. See the weekly chart below.

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