--TEKSENG Daily chart--
--TEKSENG Weekly Chart--
Tekseng is bullish after breaking out from its round bottom formation. On the daily chart, there were two breakouts that was accompanied with volume. On the first breakout on 11/8, it scaled to a high of 0.50 before consolidating into a flag pattern (flag 1).
The second breakout came on 22/8, supported with an even higher volume and it attained a new high of 0.645. The bearish harami that ensued, signals a period of uncertainty that could descend onto the stock which it did. It is now trading in its second flag formation (flag 2) with a support of 0.545. A breakout from its current resistance of 0.595/0.60 will set it off to test its important resistance at 0.645/0.65. It will encounter strong resistance at 0.70 before attempting to realize its immediate target price of 0.73/0.75. A stop loss of 0.51 is recommended for short term traders while for mid term traders, a stop loss of 0.48 is suggested..
The second breakout came on 22/8, supported with an even higher volume and it attained a new high of 0.645. The bearish harami that ensued, signals a period of uncertainty that could descend onto the stock which it did. It is now trading in its second flag formation (flag 2) with a support of 0.545. A breakout from its current resistance of 0.595/0.60 will set it off to test its important resistance at 0.645/0.65. It will encounter strong resistance at 0.70 before attempting to realize its immediate target price of 0.73/0.75. A stop loss of 0.51 is recommended for short term traders while for mid term traders, a stop loss of 0.48 is suggested..
Key Notes:
1. The company reported an improved performance for the first half of 2014 with revenue increasing 26% while profits before tax increased almost 6 fold over the corresponding period of last year
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