In our previous analysis on DiGi.Com in early Nov, we mentioned that the stock's bullish technical landscape will remain firmly solid as  long as  it maintains its posture at above the rising 30-week MAV line, which it  has never violated since the beginning of the latest bull market in 2009.  

To  re-cap,  DiGi.Com  was  trending  along  the  30-week  MAV  line  for  the  entire  year  of  2010  to  early  2011.  The  stock  also gained obvious support at the MAV line in the second half of 2011 and again, in May-June this year.

The stock tested the 30-week  MAV line once again two weeks ago and it is already showing early signs of rebounding off the  line.  This  time,  the  rebound  is  accompanied  by  the  highest  volume  recorded  since  the  mid-2009,  indicating  a  strong accumulation of shares. 

We recommend the traders to accumulate DiGi.Com's shares at above the 30-week MAV line which now lies at the RM4.71 level.  There  is  a  possibility  that  the  stock  would  continue  rebounding  from  here  and  eventually  hit  a  new  historic  peak. However,  traders  would  want  to  cut  losses  should  the  stock  close  below  this  line  in  any  particular  week,  as  the  violation would mark a serious breakdown.

From  the  current  level,  now  look  for  an  immediate  resistance  at  the  RM5.00  psychological  mark  followed  by  the  RM5.57 historic high. The 30-week MAV line is now the immediate critical support. Should it be violated, which we think is unlikely given the high volume, look for the next support at the RM3.82 floor.  

Source: OSK