AFG & BIMB- bullish breakout noted

Two banking stocks broke above their flag formation or trading range today. The first stock is AFG, which broke above its flag at RM2.62-63 (see Chart 1). AFG broke above its medium-term downtrend line at RM2.50 in August (see Chart 2).


Chart 1: AFG's daily chart as at Nov 13, 2009_12.10noon (Source: Quickcharts)


Chart 2: AFG's weekly chart as at Nov 13, 2009_12.00noon (Source: Quickcharts)

The second stock is BIMB, which broke above its trading range at RM1.20 today (see Chart 3). BIMB has been consolidating in the band of RM1.00 & RM1.20 for the past 6 months after it broke above its medium-term downtrend line at RM0.86-88 in April (see Chart 4).


Chart 3: BIMB's daily chart as at Nov 13, 2009_12.10noon (Source: Quickcharts)


Chart 4: BIMB's weekly chart as at Nov 13, 2009_12.20noon (Source: Quickcharts)

With these breakout, both AFG & BIMB could be good trading BUY. A note of caution: both breakouts are not accompanied with significantly higher volume. Without volume, the breakouts are somewhat doubtful.