Chart 1: AMBANK's weekly chart as at Oct 5, 2016 (Source: ShareInvestor.com)
I re-examined the long-term monthly chart. It looks like AMBANK is in an upward channel, with 2 upper lines and 2 lower lines. in the past, the breakdown of the inner lines allowed the share price to test but failed to breach the outer lines. If the same thing happens again, then AMBANK share price may test the lower line at RM3.50 before recovering.
Chart 2: AMBANK's monthly chart as at Oct 5, 2016 (Source: ShareInvestor.com)
Based on the above, I would recommend to defer any accumulation of AMBANK until we have seen a convincing rebound from the outer/lower line support at RM3.50.
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