Chart 1: Maybank's weekly chart as at Nov 21, 2013_11.00am (source; quickcharts)
Chart 2: CIMB's weekly chart as at Nov 21, 2013_11.00am (source; quickcharts)
A study of Maybank & CIMB's monthly charts revealed that Maybank moved sideway for 4 years from 2004 to 2008, supported by the line Am-Am (see Chart 3). The breakdown of that line- coinciding with the 2008 US Financial Crisis & its ill-timed acquisition of BII in Indonesia- sent the stock plunging below RM3.00. From Chart 4, we can see that CIMB has been in a similar holding pattern for the past 3 years- supported by the line, Ac-Ac (at RM7.00). If CIMB breaks below the RM7.00 level, would the fall be as sharp as Maybank's fall in 2008?
From Chart 3, we can see that Maybank had a sharp spike-up in January 2008- just before the selldown. Would CIMB do the same today, i.e. spike up to RM8.00-8.20? If so, should we consider selling CIMB into strength at RM8.00.
From Chart 4, we can see that CIMB's 2-year uptrend from January 2009 & January 2011 topped off after a double-top at RM8.30-8.40. The first visit to RM8.40 was in January 2011 and the next visit was in June-July 2011. Would Maybank revisit its July 2013 high of RM10.55? If so, should we consider selling Maybank into strength at RM10.50.
Chart 3: Maybank's monthly chart as at Nov 21, 2013_11.00am (source; quickcharts)
Chart 4: CIMB's monthly chart as at Nov 21, 2013_11.00am (source; quickcharts)
Note:
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.
2 comments:
Dear Mr.Alex,
May i know Maybank on the down trend mode?
Today just posted a good quarterly result.
Will Maybank still goes down?
Need your technical advice.
Hi pierre nyon
Maybank is still in a long-term uptrend line, with support at RM9.40.
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