DIALOG (Not Rated)

• DIALOG gained 11.0 sen (4.13%) to close at RM2.77 on high trading volume.
• The share seems to be in the midst of testing the RM2.80 (R1) resistance level, which it had failed to break above over the past three months.
• The MACD line had just crossed over the Signal line, which may indicate the beginning of a bullish run.
• Given that the technical indicators are improving, we believe there is a higher chance of the share breaking above R1 compared to prior retests.
• A break above R1 will be deemed as highly positive with the next resistance level identified at RM3.10 (R2). Conversely, downside support levels are identified at RM2.51 (S1) and RM2.33 (S2) if the bullish momentum is short-lived.

SUPERMX (Not Rated)

• SUPERMX slipped 5.0 sen (-1.8%) to finish at RM2.80.
• Despite yesterday’s loss, the longer-term uptrend is still firmly intact with key SMAs remains in “Golden Crossover” state whilst momentum indicators continue to display bullishness.
• From here, expect an eventual retest of RM2.92 (R1). Bullish outlook would be solidified should R1 be taken out decisively, leading to possible advancement towards next resistance at RM3.21 (R2).
• Any downside towards 20-day SMA RM2.60 (S1) may be viewed as a buying opportunity, though a break below RM2.45 (R2) would then be highly negative.

Source: Kenanga Research - 15 Mar 2018