IDEAL

Periodically,  TCB will pick a stock we may like to trade short term.  So, this week, TCB have picked the stock, IDEAL to put in *Stock In Focus (SIF)*.  Please do not take this as a buy signal as our TA reading for these stocks are for sharing purposes only.  Do calculate your own risk/reward ratio if you decided to trade this counter.

Ideal, as its name suggest, is "ideally" primed for a bullish pursuit. 

-- Ideal: Weekly Chart --

Since the day of 8/4/2014 when it started its bullish journey, Ideal has been trending up.  As with other stocks across the bourse, it was not spared when the global correction sets in but after a series of technical rebounds, it broke out from its symmetrical triangle on 4/11 with volume which has bullish implications.  Moving forward, it is confronted with an immediate resistance of 0.75 with strong resistance expected at 0.84.  A break above its previous high of 0.84 will take Ideal to its estimated targets of 0.90, 1.00 and 1.05 respectively in the medium term.

-- Ideal: Daily Chart --

On 19/8, Ideal achieved a new high of 0.84 supported by a large trading volume.  However, it formed a dark cloud pattern on that day which carries bearish implications.  As it panned out, Ideal did went into a 2 months consolidation.  It may have found a new bottom at 0.475 and its breakout from its Falling Resistance Line on 3/11 with increased volume confirms the new bottom.  Ideal's journey in the foreseeable future is looking up and its trading pattern is building up to what looks like a Double Bottom formation with a neckline at 0.75.  This has bullish implications attached to it.

The upward momentum has picked up lately and a break above 0.67 will take it to 0.70 and subsequently to the neckline of 0.75.  A break above 0.75 would confirm the Double Bottom  formation and it would set Ideal up to challenge its previous high  of 0.84 with an estimated target of 1.00.  The recommended stop loss is 0.47.

Key Notes:

1. Ideal's financial performance has been one of growth. Revenue increased 19% in 2013 while profits from operations were up 8%.  It rakes in good positive cash flow from operations and its borrowings were fully repaid in 2013.
2. It currently has a multiple proposal that include a private placement, acquisition and diversification. (Ref: http://www.bursamalaysia.com/market/listed-companies/company-announcements/1778345)