TM has just broken above the strong resistance of RM9.20.

TM has broken above its medium-term downtrend line at RM9.00 on November 7. Thereafter it continued to drift sideway. Besides the downtrend line, TM share price also faces a strong horizontal resistance of RM9.20, which has been in place since June.

At 11.45 a.m. this morning, TM has finally broken above the strong horizontal resistance of RM9.20. At the close of the morning session, TM share price was at RM9.45. With this breakout, I believe that TM is about to commence on its uptrend move. See Chart 1 & 2 below.

Chart 1: TM's weekly chart as at Nov 15

Chart 2: TM's daily chart as at Nov 15

For the traders, you may like to try out TM-CA, the call warrant of TM, with an exercise ratio of 1:1; an exercise price of RM9.21 & expiring on November 18, 2007. At the price of RM0.595 at the close of this morning session (with the mother price of RM9.45), TM-CA is trading at a premium of 3.8% only. Chartwise, TM-CA hasn’t broken above its downtrend line yet, even after this morning’s sharp rise (see Chart 3 below). To achieve a breakout, TM-CA needs to surpass the RM0.65/66 level.

Chart 3: TM-CA's weekly chart as at Nov 15

In conclusion, I believe TM is now a good buy after this morning’s breakout. Even though TM-CA hasn’t broken above its downtrend line yet, I believe it is likely to happen soon. A good entry for TM is probably now. TM-CA is trickier but a gradual entry starting now would be safer (without missing the boat).