TLS chart, page-501

Geepeem, yes TLS went ex div today and yes on open, it did fall by the dividend amount and 1c more (total 9c) from yesterday's $3.17 close price. But what happened then is that it got bought up and received good support. Especially in the last hour when the All Ords XAO also climbed up.

Even we had the div fall today, it wasn't going down to $2.98 to fill the gap today. It wouldn't do it like that in the one big hit. What happened is that it got support at $3.08 which was the last low and support it had and this was in the same vicinity of yesterday's close minus 8c. So today's low was very predictable.

The open was the low of the day and the close was the high of the day. A solid green candle with no wick. Interesting.

The ex div fall created a 2c gap. And there is also $3.19 that needs to be bridged, left from the other day 25-26 February.

TLS continues to show resilience and interest even though dividend is butchered and profits plunge. These are usually the signs that the bottom is in and shorting has eased and disappeared, the virus is gone.

Notice how TLS has been back to following the All Ords Index since August last year (as shown in last figure). Again a sign that the virus has lifted.

The price fall today brought the RSI to touch the 50 level as I was expecting and waiting for. At the very lows of the day, it had actually pierced the 50 line to the downside into the 40's, but owing to afternoon strength, came back up and is now in contact with the 50 level.

When a stock has ended its bearishness and has become bullish, there will be a tendency for the RSI to sit above 50. Falls under 50 will start to become rare. In these cases where the stock has turned, the thing to do is to buy anytime RSI falls back down to 50. And that seems to be happening now with TLS. So, today in fact was a buy day.

I picked some up, but I still feel at some stage TLS will take care of that gap at $2.98. Yes it will, but that doesn't matter and we shouldn't sit there waiting for the gap IF there is upward support and high demand. 

We have dipped under the 22 EMA line. I think in the short term we go up to $3.16 and even $3.19 to fill the gap left today and get back to the 22 EMA line and above it. If TLS holds the 22 EMA line, then good. Then the purpose and extent of the negative divergence I have been talking about was only indicating a fall back down to $3.08 and has already happened and over. If the price cannot hold the 22 EMA line and RSI fails to move above 60, then we have problems.

We also have the All Ords, if the All Ords falls, so will TLS. But so far looking strong unless today was just a fake bounce in the XAO.