Feb 21, 2011

DIALOG Technical - Accumulate: Maybank

Dialog Stock Code 7277

Dialog Group Berhad provides engineering, procurement, construction and commissioning services, and plant maintenance services. It also retails petroleum to oil, gas, and petrochemical industries, as well as markets specialty chemicals and equipment.

dialog-technical analysis 

above: Dialog daily chart (click to enlarge)

DIALOG made a daily Wave 4 low of RM1.94 in January 2010, with grossly oversold signals. With the positive crossovers from the CCI, DMI, Stochastic and Oscillator indicators, we feel that  DIALOG has the potential to trend higher in the medium term. It may break above its Ascending Triangle formation into higher territory.

ACCUMULATE (TECHNICAL) on dips for DIALOG with its firm support levels of RM1.95 and RM2.20. We expect it to test its resistance areas of RM2.22 and RM2.29 and upside targets of RM2.50 and RM2.58.Stop loss is at RM1.93

by Maybank Investment Bank