Unlike other major telecommunication stocks which saw heavy selling, DiGi.Com is in a less vulnerable position as the stock is still trading safely above the 30-week MAV line.
For DiGi.Com, the focus remains on the 30-week MAV line. As shown in the chart above, the stock had trended closely along the line from 2010 to early 2011, before finding support in the second half of 2011 and again, in May-June this year.
For DiGi.Com, the focus remains on the 30-week MAV line. As shown in the chart above, the stock had trended closely along the line from 2010 to early 2011, before finding support in the second half of 2011 and again, in May-June this year.
Hence, we would not be too concerned about any price weakness above the 30-week MAV line, as the stock’s near-term or longer-term uptrend is expected to remain intact as long it does not violate the 30-week MAV line.
From the current level, look for an immediate strong support at the RM4.73 floor. A violation of this support floor should send the share price lower towards the 30-week MAV line, which is now situated at the RM4.59 level. To the upside, look for an immediate resistance at the RM5.14 level, followed by the RM5.33 level.
Source: OSK
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