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Thursday, April 27, 2017

AMBANK: Broke Above Its Downtrend Line

In early March, I wrote again about AMBANK testing its downtrend line (here). On April 21, AMBANK finally broke above its long-term downtrend line, RR at RM5.00. See Chart 1 below.


Chart 1: AMBANK's weekly chart as at April 27, 2017_12.30 (Source: Malaysiastock.biz)

If you look closely, there is a minor resistance at the recent high of RM5.02 that capped the price rise for 4-5 weeks. The upside breakout of the long-term downtrend line and the recent high of RM5.02 set this stock free. It soared immediately to the psychological level of RM5.50 before correction set in.


Chart 2: AMBANK's daily chart as at April 27, 2017_12.30 (Source: Malaysiastock.biz)

Based on my previous financial analysis and the current technical breakout, AMBANK is a good stock to invest for long term.

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