Earlier this week, DIALOG’s share price gapped up at the opening bell and managed to break out from a “Symmetrical Triangle” chart pattern (RM2.40). In spite of the 16 sen (+6.7%) advance over the past 3 days, we reckon that the stock has further upside to go. The indicators are currently in a bullish state, with the 14-day Stochastic and RSI indicators both on an up-swing. In fact, DIALOG is in the midst of retesting its 1-year high of RM2.54, and we reckon that a definitive breakout should provide added impetus for the stock to advance higher. Should the crucial RM2.54 resistance be taken out, the share price would then have a clear path towards the RM2.68 “Symmetrical Triangle” measurement objective (aim to take profit at RM2.65, or 3 bids below TP).

 

Source: Kenanga