DIGI - Pullback Buy Setup 24 Apr 2020?

Bursa Malaysia ended last Friday, 24/4 lower as concerns about the widening impact of the Covid-19 pandemic with a vaccine still elusive continue to weigh on investor confidence.

DIGI was one of the FBM KLCI stocks affected ending 14 sen lower.

DIGI is a fundamentally sound Company with backing from local institutions (KWSP and PNB) although market competition from other Telcos and prolonged Covid-19 pandemic could affect its bottomline.

DIGI Daily Chart

Technically DIGI has been trending higher since 17 Mar 2020 making higher highs and higher lows. Last week decline has taken DIGI to a value area between the 20ema and 50ema lines, and, the Fibonacci 50-61.8% retracement, setting up DIGI for a potential pullback buy setup.

Just a note. I bought DIGI last Friday at an average price of RM4.40 as it approached and when it was at its value area. I believe DIGI will rebound and if it does it is likely to re-test and break above its SR zone at 4.62-4.68.

Disclaimer:

Trading and investment involves risk, including possible loss of principal and other losses. I shall not be responsible for any losses or loss profit resulting from trading or investment decision based on my posting and any information presented in this blog.