DIALOG (Not Rated)

• DIALOG rallied 25.0 sen to RM3.32 (8.1%) yesterday, accompanied by high trading volumes of 26.3m – above average volume of 14.5m.
• Yesterday’s move represents a breakout from the RM3.20 resistance level and 2-months consolidation phases, suggesting a possible continuation of its long-term uptrend.
• Momentum indicators are improving with MACD crossing above Signal line whilst RSI in a bullish state.
• Expect follow-through buying towards RM3.50 (R1) and RM3.67 (R2) further.
• Conversely, support levels can be found at RM3.20 (S1) and RM2.91 (S2).

PMBTECH (Not Rated)

• PMBTECH gained 30.0 sen (10.79%) yesterday, closing at RM3.08 on the back of surged trading volumes. This was the second consecutive day of huge gains in the share.
• More importantly, yesterday’s move broke above prior resistance of RM2.74, paving the way of the share to trend higher.
• Momentum indicators also appeared seemingly in supportive of a bullish outlook as evidenced by the upwards movement in the MACD and RSI, coupled with a bullish “Golden Crossover” among key SMAs.
• From here, expect PMBTECH to move towards RM3.30 (R2) resistance level after the RM3.10 (R1) is decisively taken down.
• Conversely, should buying momentum fail to sustain, expect retracement towards immediate support level of RM2.74 (S1) with RM2.39 (S2) further down.

Source: Kenanga Research - 16 May 2018