Digistar is a profitable company, with net profit of RM19 million & turnover of RM98 million for FYE30/9/2011. For more, go here.
Digistar has been consolidating for the past 6-7 months after making a high of RM0.535 in June last year. The consolidation takes the shape of a saucer bottom. It enjoys support from the medium-term uptrend line (SS) while enduing pressure from a 3-fan downtrend line. Digistar appears to have broken above the 3rd fan line today at RM0.50, which is also a horizontal resistance. With this double breakout, Digistar is poised to test its recent high of RM0.535. If it can surpass that level, Digistar is likely to continue with its prior uptrend.
Based on good financial performance, exciting newsflow & positive technical outlook, Digistar could be a good trading BUY.
Chart: Digistar's daily chart as at February 3, 2012_9.30am (Source: Quickcharts)
2 comments:
Hi alex, with digistar news going to main board, the price doesnt seem to have move much.. is it still a BUY and HOLD for long term ? are we expecting digistar to break RM 1 like JCY ?
Hi Kilrathi
Digista is in a downtrend line, with resistance at RM0.45+0.46. It has tested this resistance. If it can break above the downtrend line, its next resistance is at RM0.50-0.53.
The poor technical outlook may be due to poorer results in QE31/3/2012 & QE31/12/2011. The company is now embarking on new projects which may reverse the slide. This will probably coincide with a breakout above the present downtrend line. Let's wait & see.
Post a Comment