After a steep drop after the election, the stock is just meandering sideways for a long time.
There are a few reading we can take from the daily chart of Maybank above.
First of all it has broken above a downtrend line. This signals to us that Maybank wants to go higher. There is also an uptrend line which you should watch. As long as the stock is trading above the uptrend line, I believe it will slowly chug higher.
The 200 MA is causing some problems for it short term just like the KLCI which is just slightly below the 200 MA. But if it can manage to break above the 200 MA and break higher then it will continue to move up.
The surge in foreign funds investing in finance stocks has lifted many Malaysian bank stocks higher. Maybank is now making a nice uptrend in the daily chart. Will it be able to overcome the old highs to make a new all time high?
Looking at the price chart of this stock is a pleasure. Sometimes its so difficult to navigate through the zig and zag of certain indexes and stuff but one look at this stock tells us that MBB is in a nice uptrend.
I always believe its easiest to play stocks that are trending up. Period.
So far Maybank is still in a nice uptrend.
Since Maybank makes up about 10% of the entire Malaysian stock market capitalization, the fact that it is in an uptrend bodes well for the Malaysian KLCI.
The stock is still above its rising 50 MA and thus we should continue to be bullish on this one. Do be careful if it slashes below the 50 MA in a big red bar or heavy volume. The support areas to watch I have highlighted above and any break below each one will make us more bearish on MBB. But so far it has not broken below those support areas and we should therefore be bullish.
The weekly chart of Maybank is also very healthy.
I believe that the supply from the left back in 2013 to 2014 has been more or less absorbed and since the stock is in an uptrend in the daily chart and weekly chart we should continue to be bullish on Maybank. The bias for it to make new highs is also in favor of the bulls.
To get a possible target we can use the measured move.
We will look at the weekly chart of Maybank first.
The stock has started a weekly uptrend a long time ago. After breaking the weekly downtrend line, this stock changed from being in a long term downtrend to a weekly uptrend.
I believe the supply and resistance around 10.00 has already been absorbed by the nice run up in 2017. Therefore it leaves only the resistance near 10.50 to be absorbed.
The chart above is the daily chart of Maybank.
As you can see, there is lots of support around the 9.60 to 9.80 area. Therefore, it will not be easy for the bears to creep in. Since the stock is in an uptrend and there is lots of support below, it is very possible that Maybank will be able to overcome its old highs to make a new all time high.
Last of all, I would like to show you the weekly chart of the Malaysian finance sector. The entire sector itself is leading Maybank as it has broken out of the old highs set in 2014.
Since an old high once broken becomes a new support, as long as the sector stays above this support area, I believe Maybank has a very big probability of moving higher and making record highs.
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