DIALOG has broke out strongly above its 50-day SMA and surpassed the 38.2% Fibonacci resistance after the share price rose 10 sen to RM2.80 (also its 100-day SMA) yesterday. In fact, the share price formed a bullish “Marubozu” candlestick with key indicators biased to the upside, particularly the MACD, which has just entered into the positive zone. Hence, we believe the share price may potentially go up to re-test the next Fibonacci resistance @RM2.90 and RM3.08 next should DIALOG manage to overcome the 100-day SMA resistance @RM2.80 in a decisive manner. Otherwise, a protective support is pegged at RM2.70. 

 

Source: Kenanga