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Tuesday, June 20, 2017

MBSB: Uptrend May Continue

In January, I posted on the start of MBSB's next upleg (here). From RM0.96, MBSB rose to a high of RM1.36 in May. The stock consolidated for the past 6 weeks. Today it looks like MBSB is trying to break above the horizontal resistance at RM1.36. This could be due to market reaction to the news that it has applied for BNM's approval to begin merger talk with Asian Finance Bank.

If it can break above and stay above the horizontal line at RM1.36, MBSB could be a good trading BUY. If you choose to buy into MBSB, please exercise careful discretion given the current weak market sentiment. Do not over-trade! 


Chart: MBSB's daily chart as at Jun 20, 2017_11.40am (Source: Shareinvestor.com)

Note:  

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

5 comments:

NCW Co said...

Good advise Alex. Thank

What you think of KGB?

Alex Lu said...

Hi CW Co

I am not familiar with KGB. Chartwise, it has broken its uptrend line at RM0.66 on May 25. It maybe forming a head and shoulders pattern, with neckline at RM0.60. As you may know, that's a reliable reversal pattern if the share price breaks below the neckline. If it has tested the neckline and rebounds upward, it will be a continuation pattern. The price movement going forward depends on the outcome of a possible test of the RM0.60 level.

NCW Co said...

Hi Alex,

Is the head formed as at today?

Alex Lu said...

Hi NCW Co,

KGB has not formed a head & shoulders formation yet. Go to: https://www.tradingview.com/x/A3VlwpFx

For more on head & shoulders formations, go to:
a) http://www.investopedia.com/terms/h/head-shoulders.asp
b) http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:head_and_shoulders_top_reversal
c) http://www.chartpatterns.com/headandshoulderscharts_.htm

NCW Co said...

Thank Alex. I will check on the links.