Traders would need to analyze DiGi.Com's monthly chart toget a better picture of its current technical position. A 'Long Leg Doji' wascreated last month when its monthly RSI reached as high as 89.4 pts. Becausethis bearish reversal pattern was created after a 2-year rally and it iscurrently in overbought territory, we think the possibility that DiGi.Com'sshare price will start retracing or consolidating sideways in the coming monthsis rather high. Should its share price retrace, we are eyeing the 10-month MAVline as the downside target. We advise traders to sell DiGi.Com's shares now.

DiGi.Com's monthly chart is clearly signalling a potentialprice weakness ahead as a 'Long Leg Doji' was created last month, when itsmonthly RSI reached an overbought level that reached as high as 89.4 pts. It isthe most obvious bearish reversal pattern created since the Global FinancialCrisis in 2008.

Because of the bearish reversal pattern which  was confirmed by the monthly RSI reading of89.4 pts, we think the possibility  thatDiGi.Com's share price will start to  retrace or trade sideways fromthe current level is high.  We advise tradersto sell DiGi.Com's shares now. We are eyeing the 10-month MAV line, which nowlies at the RM3.45 level, as the downside target. The reason this movingaverage line is used is  due to thefact  that the stock has been trendinghigher steadily at above this line after the Global Financial Crisis.Nevertheless, a crack above its historic high of RM4.32 would completely erasethe  current  price weakness. Anyhow, we think the odds arevery low  for the stock  to scale to greater heights without taking a breather.

Immediate support is seen at the RM3.52-RM3.62 area butshould its share price start retracing, we think  that it is likely that the 10-month MAV linewill be tested. To the upside, the historic high  of RM4.32 would be its immediate tough resistance.

Source: OSK188