Friday, July 19, 2013
Finance index has a breakout
Finance index broke above the 17000 level this week (see Chart 1). This breakout could signal the rise of two heavy weight stocks- Maybank & CIMB- which had lagged behind more agile mid-cap & small-cap banking stocks, such as AMMB, AFG & Affin.
From Chart 2 & 3, we can see that Maybank has just broken above the horizontal resistance (and recent high) at RM10.50 while CIMB is now pressing against the horizontal resistance at RM8.50.
Based on technical consideration, Maybank could be a good trading BUY. CIMB may follow suit.
Chart 1: Finance's weekly chart as at July 19, 2013_10.30am (Source: quickcharts)
Chart 2: Maybank's weekly chart as at July 19, 2013_10.00am (Source: quickcharts)
Chart 3: CIMB's weekly chart as at July 19, 2013_10.00am (Source: quickcharts)
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, Maybank & CIMB.