As boring as it may be, TLS is my pick from within the Telco sector. An attempted breakout failed, meeting a strong resistance at it’s 200 day SMA as well as prior GAP DOWN zone of $5.30 as shown on the chart. Still within the potential inverse head and shoulders accumulation pattern testing a support at the close today. We may see further downward pressure. This said, the current price support coupled with it’s hug to the lower Bollinger Band today is likely to ring some “Go Long” alarm bells with some mechanical trading systems, built around the price action & bands relationship. Should that be the case, we may expect a potential bullish pivot point reversal over the next few sessions from current levels. Failure at the current $5.00 level may suggest a test of $4.85-$4.90 zone.
In summary, in the short term the bears are in full control and committed at the close today (31/01). Are we going to see their commitment and control maintained with a follow through tomorrow ? Keep watching the chart with your analysis…
VOC and TPM, technically speaking are inferior to TLS. Fundamentally one may disagree on this front.
Disclosure : TLS held
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