Titan Europe (TSW) - Breaking out?

Titan Europe (TSW) closed today at 83p. This marks a quiet breakout, on low volume, above the resistance level (82.5p) that has been containing the price for about three months.

TSW - 6 month chart

Now you might think that nudging through by a mere 0.5p is insignificant but in our experience, these small moves often mark the start of a new uptrend. The OBV remains strong and the MACD indicator gave a buy signal a few days ago. Judging by the longer term chart, there doesn't seem much to stop the SP climbing to about 122p (see below). Do you agree?

Titan Europe - Longer term chart (approx 27 months)

Apart from Blackrock increasing their holding to above 5% (17th November) and the good trading update on 5th November (for the 3rd quarter to 30th September), we can't find any other obvious reason for the breakout. If you have any ideas, please share them with us here.

STV Group - Is this the perfect rounded bottom?

• Scottish TV Group (Epic: STVG) has been on the DIY-Investors.com radar screen for some while. The share price graph (below) indicates that it is in the process of forming an almost perfect textbook "rounded bottom" - generally considered one of the strongest of bullish bottoming patterns.

The OBV is also strong and the RSI is also looking good. The price seems to be hugging the 200 day SMA but this in turn is now curving upwards.

The fundamentals also look encouraging. Based on the concensus forecasts for Y/E 31.12.2010, valuations are as follows:

• PER (pr) = 2.92
• PSR = 0.41
• PEG (pr) = 0.14

Being a FTSE Fledgling member, you can also tuck this one away in your self-select Maxi-ISA. Take a look and let us know what you think!

Johnson Service Group (JSG) - Breakout from trading range

You can see that Johnson Service Group (JSG) has clearly broken out of the trading range that has been constraining it for some weeks, see Graph below.

The next likely resistance level is 36.5p, the closing price on 7th May 2008, when JSG hit a "minor high", before reversing to begin its final downtrend leg. Since hitting its low (5.25p on 17th February 2009), it has been gradually creeping upwards in a typical step/stutter fashion.

With earnings (eps) forecast to nearly double in the current year, ending 31st December 2010, and a PEG of 0.16, prospects look to be improving for this turnaround candidate.

We believe that this share, in a typical "boring" Company - unloved by the City, is likely to undergo a significant re-rating over the next twelve months. What do you think?