Supporting the FBMKLCI on Wednesday were the strong gains seen in heavyweights CIMB and Digi, each contributing 1.71 and 1.63 points respectively to the benchmark index. On the daily chart, Digi commenced its rally back in May and has since formed an upward sloping trend line. The share price subsequently corrected towards RM4.80 before consolidating sideways for around two weeks. On Wednesday, however, Digi managed a breakout from the congestion zone amid high traded volumes. The Stochastics indicator has hooked upward, indicating the start of a short term up-cycle, while the MACD histogram has also moved towards the zero line, which indicates a shift in momentum from sellers to buyers.

On the weekly chart, Digi confirmed the bullish "Morning Doji" candlestick formation upon finding support at the 76.4% Fibonacci Retracement Level. Its 5-month uptrend looks to be intact, and should the bullish reversal pattern prove real, Digi's share price may look to retest the RM5.04 high next. Further resistance beyond that level can be found at RM5.33 while the downside support remains at RM4.75. As for the indicators, the MACD and Stochastics remain positive despite the RSI hovering within overbought levels.

Source: Kenanga