Thursday, December 06, 2007

Maybank poised to go higher

Maybank has recently broken above its downtrend line at the RM11.60 level. With this breakout, Maybank is poised to move higher. I believe that the next upleg could well commence when Maybank share price has surpassed the horizontal resistance at RM11.80. This morning, Maybank has traded at this level & it has even touched the RM11.90 (for a mere 10 lots done). If Maybank can surpass the RM11.80 with good volume & follow-through in the following few days, it could be a good trading buy.

Chart: Maybank' daily chart as at December 5 (courtesy of Quickcharts)

Alternatively, you can consider Maybank-CE or Maybank-CF. The terms of these CWs are:
  1. Maybank-CE (exercise price: RM12.40, exercise ratio: 10 for 1, expiry date: March 28, 2008)
  2. Maybank-CF (exercise price: RM11.80, exercise ratio: 2 for 1, expiry date: June 30, 2008)
Based on yesterday's closing prices, the premium of Maybank-CE & Maybank-CF are 12.3% & 12.9%, respectively. The final CW, Maybank-CA is more attractive as it is trading at a discount of 1.9%. Unfortunately, it's due to expire on January 28, 2008. In addition, Maybank-CA is not a cash-settled CW. One would have to subscribe for the underlying share at the exercise price of RM9.72.

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