TLS chart, page-1062

Lost interest in TLS past few weeks when the CEO Penn came out and started using the words challenging and headwinds again and essentially put out a profit warning before most of the other companies out there. As if TLS was a bank share and not a defensive telco. He was almost too eager to get out there and issue a warning.

Now back to this old dog stock after a few weeks being out of it completely. Bought back in yesterday and today.

As we know, it has been a nasty 2 months for all. I hope you are all coping. I took a big hit but now recovering.

Back to the charts. Main features I can see are, TLS just starting to stick its head through that upper trend line formed by the intra day highs of 1 and 2. The meaning of this I feel is that TLS has now had enough time doing nothing moving sideways and starting to see some life coming in. This follows after a recent first time close under $3.00 in a while which proceeded with a nice 9c green candle bounce with 33 mil volume behind it.

Also note the gap left above between $3.65-$3.69. That should be filled one day between now and December.  

I am now expecting some rise coming here for TLS. Not because we have a good CEO and good balance sheet and profits. But for a bounce off $3.00 with the tide raising all boats and TLS doing it for old times sake. The weekly RSI (last image) has room for a bounce. I would ride this coming rise up until the weekly RSI goes and touches the 50 line and then reassess the situation then. That should easily be $3.20 and maybe $3.40 (that significant level where it broke down from). If TLS is in a long term bear market, the RSI will fail and not exceed 50. Then back down she will go to under $3.00. But don't let that be of concern now. What we have now is a potential $3.00 to $3.20, $3.40 coming and that is all that matters. No more holding for me. 5c is 5c and 10c is 10c. Only vigilant trading.

I saw a picture of Penn a few weeks ago on one article sitting down with a smile saying, "we are all in this together". Yeah, with you still on 5 million per year income, we are all in these tough times together Penn.

I say it again, this man has to go, the sooner the better for TLS.

Wish you are all well and feeling better in the weeks to come.