Waseong has a bullish breakout at RM2.63

On March 29, Wah Seong Corporation Bhd (‘Waseong’) & Dialog Group Bhd (‘Dialog’) announced a Joint Venture Agreement ("JVA") between Waseong's wholly owned subsidiary company, WASCO Energy Ltd ("WascoE") and Dialog's wholly owned subsidiary company, Dialog Systems (Asia) Pte Ltd ("DSA") to invest in a new joint venture company ("JVC") for purposes of a joint venture on a 50% (WascoE) : 50% (DSA) basis.

The purpose of the Joint Venture is to promote and market the entire range of products and services offered by both DSA and WascoE and to use the JVC as the Joint Venture's focal point to network and jointly explore, market and develop business opportunities worldwide.

Since the announcement, Waseong has surpassed its horizontal resistance of RM2.63 to close at RM2.70, on March 30. It gained another 10 sen yesterday (April 2) & as at 4.30 p.m. today, the stock is trading at RM3.02. Waseong would be a BUY if the Waseong share price were to pull back to RM2.80/90, over the next few days.

Chart 2: Dialog's monthly chart as at April 2

Incidentally, Dialog had a breakout at the RM0.70 in November last year & that stock has gone up by 150%. Hopefully, we can see a similar big move in Waseong as well.

Chart 2: Dialog's monthly chart as at April 2

Note: I've posted on Dialog's earlier breakout in November last year (go here). Again, I have to reiterate that this is strictly a technical call without any consideration of the company's financial performance.