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.