Friday, March 05, 2010

Maybank may have a bullish breakout

Maybank may have finally broken above its horizontal resistance at RM7.00-7.08. Maybank has been enjoying a steady increase in volume traded over the past 2 months, which is a good sign of an accumulation in anticipation of an upside breakout.


Chart 1: Maybank's daily chart as at Mar 5, 2010_9.30am (Source: Quickcharts)

If Maybank (presently trading at RM7.13) is too pricey for your limited funds, you may consider Maybank-CJ which has an exercise price of RM5.119; exercise ratio of 1.7963-to-1; and expiring in August 2010. At the present price of RM1.15, Maybank-CJ is now trading at a premium of 0.8% only.


Chart 2: Maybank-CJ's daily chart as at Mar 5, 2010_9.35am (Source: Quickcharts)

Maybank-CK has a similar premium as Maybank-CJ but it will expire in May 2010, while Maybank-CL & Maybank-CM has premium of 6-8%.

Based on the above, I believe Maybank could be a good trading BUY. Maybank-CJ would be a good proxy to play on this breakout.
at

5 comments:

  1. Mother of TwoFriday, March 05, 2010 10:47:00 AM

    Hi Alex,

    I wanted to buy into Maybank CJ but the seller's price is RM1.20
    Anyway, will monitor how it goes.
    What do you think of Keuro at
    RM0.45?

    ReplyDelete
  2. Alex LuFriday, March 05, 2010 12:11:00 PM

    Hi High Society,

    Keuro looks primed for a upswing to RM0.50 & thereafter RM0.58-60.

    ReplyDelete
  3. macondoFriday, March 05, 2010 2:03:00 PM

    Hi Alex, thanks for your blog.

    I wonder if buying into Maybank may be risky in light of probable capital raising that will be required to fulfill more stringent Basel II requirements.

    Separately, if you happen to have any thoughts on how a slowdown in China would positively / negatively affect key Malaysian corporate sectors I'd be very interested in hearing your thoughts on a future blog post.
    Thank you,

    ReplyDelete
  4. East Point TradingFriday, March 05, 2010 3:11:00 PM

    Hi Alex,

    Thanks for your info about MayBank.

    Today all bank is up but AMMB is drop any comment on this share?

    And I found that AMMB share price is cap on RM5.00. Is it a beginning of accumulate share?

    Thanks, your comment is vary appreciate.

    ReplyDelete
  5. Mother of TwoFriday, March 05, 2010 4:30:00 PM

    Hi Alex,
    I have the luck to read your blog (on Maybank) but no luck to earn the money :(
    Regards
    Grace

    ReplyDelete