KUALA LUMPUR (May 12): AllianceDBS Research said Telekom Malaysia Bhd (TM) was trending sideways and that TM had on May 11 traded within previous day’s range to form an inside day bar before closing near the day’s high at RM6.60 (up 2 sen or 0.30%).

AllianceDBS Research in its evening edition Wednesday said

TM continued to trade below the 20-day and 50-day moving average lines in the last 3 days.

“The inside day bar indicated a breather in the game play.

“Given the recent price action, the stock is likely to move between RM6.50 and RM6.70 in the coming few days.

“A crossover of RM6.70 should see further price rise to the next overhead resistance zone, RM6.75 – RM6.80.

“However, a fall below RM6.50 would put pressure on the stock down to the subsequent support at RM6.40,” it said.

AllianceDBS Research said stock volume traded on May 11 was 5.66 million shares compared to the 3-month average volume of 5.13 million shares.

The research house said that indicators wise, the MACD was below the 9-day moving average line with the sell signal remains intact.

It said the relative strength index indicated that the stock was currently in an oversold zone.