RHBCap could be a trading BUY

RHBCap is a laggard among the banking stocks. It looks like it has finally broken above its medium-term downtrend line (RR) at RM4.70 today. RHBCap tested its long-term uptrend support (SS) at RM2.50 in October last year. On the recovery rally, RHBCap broke above its immediate downtrend line (R1R1) at RM3.80 in April. If we ignore the sharp sell-down in October last year, we can see that RHBCap's bottoming phase over the past 1 year (since July 2008) looks like an expanded triangle (denoted as 'TTT'). It broke to the upside of the triangle 3 weeks ago. RHBCap's immediate resistance is at RM4.90-5.00 & thereafter at RM5.45-50.


Chart: RHBCap's weekly chart as at August 10, 2009 (Source: Quickchart)

Based on technical breakout noted, RHBCap could be a good trading BUY.