DIALOG - Oct-Dec Consolidation Phase Ends (OSK)

The stock’s breakout from the RM2.32-RM2.50 consolidation phase last Friday and the follow-up buying that emerged on Monday have more or less confirmed that Dialog’s Oct-Dec consolidation has come to an end. This means that the stock will now continue to extend the rebound which started from the RM1.79 low in September. Traders may consider accumulating the shares at above the RM2.50 level. We are eyeing the initial upside target at the RM2.79 level, followed by the RM2.88 level. Our cut-loss point is obviously pegged at below the RM2.50 level, below which a return would imply a fake breakout from the consolidation range.