SUPPORTLINE

TADMAX Resources saw a bullish crossing of its short-term descending trend line at around the 36 sen mark on Tuesday to begin a new leg of uptrend. However, the crossing was tentative given the stock’s return below the trend line at market close, and needs a further push to confirm the continuation of a sustained uptrend. Based on the daily price chart, having been trapped in a falling pattern since mid-March last year, the counter hit bottom on Dec 4 and has recently seen a reversal of its fortunes. On Jan 3, the counter saw strong buying interest that positioned it within striking range of a breakout. Continued bullish momentum over the next few trading sessions and Tuesday’s intra-day high saw the stock rise out of the doldrums and aiming for higher ground. A confirmed break out of the current negative pattern will see the counter targeting the next resistance at 39 sen, which coincidentally meets the uppermost 200-day simple moving average. The technical indicators are looking bullish and regained some steam in the overbought area on Tuesday. The slow-stochastic momentum index continues to rise after avoiding a “sell” signal with the %K putting some distance to the %D. The 14-day relative strength index has lost some momentum but remains healthy, flattening out at the overbought area at 75 points.. The daily moving average convergence/divergence histogram continues to look bullish and lends confidence that the uptrend will continue, even if there is a brief halt to the share price while investors take some profit off the table. The immediate support to the share price lies at the 35 sen mark, which was tested on Tuesday as the counter saw some profit-taking from the recent gains. In the event of a breach, the next support is pegged at 33 sen while a more concrete buffer rests at 30 sen.