Talam Exit from PN17 ?

In April 2009, there were talks that Talam would be coming out of its PN17 status anytime. Its stock price moved from 4 sen to 14 sen. 12 months have passed, Talam remained in PN17. Lately the talk has intensified, and Talam was the top volume leader today with 149 millions shares changed hand, what does its chart tell?

The first thing that strikes me is its OBV, very strong and has been breaking new ground even though the price has yet to break out.

The second thing that catches my eyes is its double bottoms formation.

The third thing is, it has broken its neckline today with very high volume, a classical breakout. In the medium term, it is expected to head for its minimum target price of about 23.5 sens.


Talam's possible wave count is as shown above. It is currently in its sub-wave iii of wave 3 of its major wave (III). It is iii of 3 of (III) and with a breakout of its Double Bottom Neckline. That is the reason for its high volume today.

Mitrajaya

Mitrajaya put on 10 sen today (9.35%). It managed to break its neckline of 85 sen on 10th March and it continued to move to Rm 1.27 to complete its wave 3.

Its 10 sen up today can either be its wave b or the beginning of its wave 5. Time will tell. Minimum target is Rm 1.40 for its major wave (III).