TAGB has a bullish breakout

Before we start, let's note that the FBMKLCI is now down about 6 points to 1471 (as at 9.30am). We would be entering the danger zone (or the change-over zone as per yesterday's post on Market Outlook) if the FBMKLCI were to go below 1458-1465 levels.

One stock which I have been tracking for the past few days is TAGB. The stock has broken above its downtrend line at RM0.31. It has surpassed the immediate horizontal resistance at RM0.32. This stock is about to commence on its upleg. Its next resistance is at RM0.35 & then at RM0.38.


Chart 1: TAGB's daily chart as at Nov 17, 2011_9.20am (Source: Quickcharts)

You may notice that its parent company, TA is now testing its downtrend line at RM0.62. Unlike TAGB, TA did not see an increased volume over the past few weeks. I believe the play is at TAGB.


Chart 2: TA's daily chart as at Nov 17, 2011_9.20am (Source: Quickcharts)

Based on the above, I believe TAGB could be a good trading BUY. However, I shall again caution that the market could be at a tipping point. You should exercise careful discretion & do not trade too aggressively.