Thursday, January 03, 2013

RHBCap may have a bullish breakout

RHBCap broke above its strong horizontal resistance at RM7.75 this morning. Its immediate resistance  are the horizontal line at RM8.15 and then the upper boundary of the gradual upward channel at RM8.35.

Chart 1: RHBCap's daily chart as at Jan 3, 2013_12.15pm (Source: Quickcharts)

The longer-term chart for RHBCap is bullish.  The stock, which had been consolidating for the past 18 months, could continue with its prior uptrend. It may test its all-time high at RM10.50 or even the upper boundary of its irregular upward channel at RM13.00.

Chart 2: RHBCap's monthly chart as at Jan 2, 2013 (Source: Tradesignum)

RHBCap (at RM7.78) is now trading at a PE of 9.4 times (based on annualized EPS of 83 sen) or 1.35 times its book value (of RM5.76 as at 30/9/2012). At this multiples, RHBCap is deemed attractive. For more on its latest quarterly results, go here.

Based on technical consideration, RHBCap could be a trading BUY.

In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, RHBCap.  

1 comment:

hkloon said...

Hi Alex, with index hitting all time high, why is Bursa not follow as well? It's been at 6 for quite some period of time... HKEX in HK has risen from 100 to 148HKD tracking the HK index, however, it's different story for bursa.