KUALA LUMPUR: CIMB Equities Research has a technical buy call on DIALOG GROUP BHD [] at RM2.04 at which it is trading at a FY12 price-to-earnings of 17 times and price-to-book value of 6.9 times.
It said on Wednesday, Sept 28 the correction from its RM2.88 high was sharp. Prices tumbled to a low of RM1.79, almost reaching the 61.8% FR level, before buying support started to emerge again.
“Looking at the chart, it seems that the RM1.79 low would likely be its immediate support,” it said.
CIMB Research said buying support was picking up. MACD histogram bars were falling at a slower pace while RSI had also hooked upward. Hence, the stock should be in a rebounding mode.
“Aggressive traders may start to accumulate now. As long as prices hold above the RM1.79 low, there is a good chance that the candles may swing closer towards RM2.16 and RM2.42,” it said.
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