(Note: The chart below is adjusted for dividend payment. As a result, the September 2016 high is not reflected as RM5.11 but as RM5.06. I believe the RM5.11 will still pose some resistance for the current breakout.)
Chart 2: DIGI's weekly chart as at Feb 6, 2017_11.30 (Source: MalaysiaStock.Biz)
The last time, DIGI broke above its intermediate downtrend and followed up with an upside breakout of the ensuing sideways trading range was in early 2014. In that rally, DIGI rose from the breakout point of RM4.20 to a high of RM6.00- giving investors a return of 42% over a 1-year period. If the current breakout leads to a similar rally, we might see DIGI making a high of RM7.00.
Based on the current technical breakout, I believe that DIGI could be a good trading BUY.
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.