Following our technical report dated 13th September,
Digi.com Bhd ("Digi") has since rallied 42 sen to a high of RM5.35
last week. The share price subsequently formed a bearish "Evening Doji
Star" reversal pattern on Monday, closing 3 sen lower to end the day at
RM5.25. The candlestick formation indicates that buying momentum has
diminished, and that profit taking is likely to intensify. Indicator-wise, the
14-day Stochastics has hooked downwards from overbought territory to signal the
start of a short term down-cycle. Hence, we would expect a minor correction
within an overall uptrend going into the week and recommend that investors book
in previous gains with the intention of re-entering back later at a lower price
(at the trend line at RM4.98/RM5.00).
Source: Kenanga
No comments:
Post a Comment