The blue-chip barometer just closed above the upper Bollinger band yesterday, which read 1,340, signaling a bullish breakout which should boost upside momentum toward 1,354, before more significant profit-taking interest emerge. A strong breakout above this level will extend gains to target 1,380 next, and then 1,392, matching the 24 July 2007 pivot high. While technical indicators are flashing initial overbought readings, trend indicators stayed bullish to indicate further upside ahead. Immediate support is upgraded to yesterday’s low of 1,339, with subsequent supports at 1,329 and 1,319, representing the previous two days’ lows.
Banking stocks staged breakouts yesterday to close at multi-year highs, a bullish sign which herald further upside ahead. As such, we reiterate our call to buy on dips banking stocks for medium-term upside, with today’s focus on AFG and Public Bank which staged bullish breakouts yesterday. For AFG, a close above RM3.00 will enhance upside bias toward revised upside targets of RM3.20 and RM3.40 in the immediate term, while Public Bank should appreciate further towards RM12.40 and RM12.80 in the weeks ahead.
TA securities
