AMBANK: Another One Bites The Dust?

In late September, I shared my thoughts on a few bank stocks in the finance sector. AMBANK was one of the stocks that I mentioned. I felt that AMBANK should have good support from its long-term uptrend line at RM4.20. The stock broke that support this week. Yesterday, it broke the psychological RM4.00 mark!


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.

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.