Friday, July 15, 2011

Dialog- time to take some profit

Dialog has risen steadily from RM1.20 in October 2010 to a recent high of RM2.88 in early June. From the chart below, we can see that the 10-week SMA line has provided good support for this stock. Three weeks ago, it broke below the 10-week SMA line but it managed to recover. This week, it has again broken below this support. The indicators are all weakening, with bearish divergence noted in the RSI and MACD hooking down.

Based strictly on the above technical reading, I believe it is advisable to take some profit on Dialog.


Chart: Dialog's weekly chart as at July 15, 2011_4.00pm (Source: Quickcharts)
at

6 comments:

  1. limchohooiFriday, July 15, 2011 9:39:00 PM

    Time to buy Dialog Put Warrant?

    ReplyDelete
  2. Alex LuMonday, July 18, 2011 10:53:00 AM

    Hi limchohooi

    It can a good bet. At the price of RM0.16, Dialog-HA is trading at a premium of 10.4%. The option expires in February 2012 & it has an exercise price of RM2.81 & an exercise ratio of 3-to-1.

    ReplyDelete
  3. limchohooiThursday, July 21, 2011 11:27:00 AM

    Bought 30,000 shares of DIALOG-HA at 0.16.

    ReplyDelete
  4. Alex LuThursday, July 21, 2011 2:42:00 PM

    Hi limchohooi

    For Dialog to climb above the uptrend line again, the share price must exceed RM2.80-82. I think it is a fair trade, at the present premuim.

    ReplyDelete
  5. limchohooiFriday, July 22, 2011 9:17:00 AM

    Bought 20,000 shares of DIALOG-HA at 0.145.

    ReplyDelete
  6. Alex LuFriday, July 22, 2011 9:50:00 AM

    Hi limchohooi

    Please exercise your discretion. Nothing is a sure-thing when it comes to investment.

    Please do not tell me what you do with my analysis. It only serves to put pressure on me & that affects my analysis.

    ReplyDelete