TWS broke new high after impressive financial report

Chart: TWS daily chart (Source: tradeSignum)

Technical Commentary

Refer to TWS daily chart shown above, it continue the bullish uptrend after breaking the main resistance at RM4.00 in the last trading sessions. During several months of consolidation before the break out, it had several attempts to break the main resistance line. Eventually, with the successful breakout, a strong bullish uptrend can be anticipated in near future and the outlook is fairly positive.

Fundamental Commentary

TWS has announced an impressive quarterly financial result yesterday, with the big jump in the revenue, net profit income and earning per share. The company is definitely in a strong growth position, this is partly due to the impressive profit made by the subsidiary companies BERNAS and TWSPLNT.

Risk

The only concern is the company may face trouble in paying back the high short term debt and long term liabilities which it had spent to acquire BERNAS and other business expansion program in the last quarters. It has the plan to reduce the share holding in BERNAS and may sell certain amount of BERNAS shares in near future to bring down the debt level.

Near term outlook
Profit taking activity may arise

Long term outlook
Bullish - Long term uptrend, buy on weakness

Trading opportunity
Due to strong gain during the last few trading sessions, profit taking activity may kick in, it is good bargain hunting opportunity during profit taking.