TWS Daily movement analysis
As discussed earlier, TWS has broken the main resistance and entered into Super Bull Run! The breakout was mainly due to the strong quarterly result announcement, subsequently entered into strong uptrend with the support of buying interest created among investors. It has increased from RM4.00 to RM6.00 traded as on 17th Dec 2010. With the impressive of 50% gain achieved in 2 weeks time. The question now is does TWS going to hit the ceiling or continue flying sky high? Technically, there are many ways to predict the stock direction ahead. The fairly basic one which I feel is also one of the most effective tool is by using the "Daily Trading Volume Analysis" method.
TWS Daily Trading Volume analysis
Refer to TWS Daily Trading Volume table above, noted that eversince the Bull run triggered in early Dec 2010. The trading volume has shotted up from an average daily trading volume of less than 5,000lots to the highest of 34,000lots achieved on 3rd Dec 2010 (Please find details of trading volume on the Website). It followed by a minor and quick profit taking activity which is also called the filtration process to clean up the weaker/less confidence traders, and the process has to be accompanied with a "reducing daily trading volume" - which can only being rectified as "Healthy Filtration Process". The daily trading volume is slowly reducing from the top of 34,000lots to around 15,000lots, and subsequently reducing to around 5,000lots on 16th Dec 2010. Nevertheless, the very positive sign is the stock price is not only able to holding so well but still able to continue moving up with lower volume supported. It means that this stock is sending a very positive signal to the trader showing that it can easily assorb all the selling pressure with little trading volume transacted. So, since the stock is "telling" the trader clearly that it is stronger than everyone's thought, and is ready to continue flying high!
Conclusion
Due to the impressive financial results achieved and attractive valuation, as well as strong technical indicator supported. It is definitely a STRONG BUY CALL!
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