Similarly, DIGI's rebound looks to be on course following our 'technical buy' call (RM4.75) in late November. Heavyweight telco stocks have been leading the rally in the past two weeks, although we noticed that DIGI had been lagging behind its peers. However, with its strong upward move yesterday, we believe that DIGI has come back into play. The share price took out the 100 day SMA to end the day at RM5.00, up 10 sen. The share price has also broken out of the RM4.80-RM4.90 congestion zone, which, to some extent, relieves doubt about the sustainability of the rebound. We reckon that DIGI will likely play catch-up with its peers and suggests that investor looking for further upsides should perhaps employ a trailing stop-loss system. The initial stop-loss of RM4.50 should also be moved up to RM4.78 to limit the downside risks.
Source: Kenanga
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