Friday, June 17, 2011

AMMB: Crucial 200-Days SMA Support Near RM6.32

Stock to watch-AMMB (RM6.40 - Trading Buy)

AMMB: Crucial 200-d SMA support near RM6.32

Our institutional research remains positive on AMMB with a RM7.71 target price. This is based on value propositions from ANZ have improved asset quality, risk management and competitiveness. Improving profitability and higher dividend guidance and focus on profitable growth is bearing fruits.

After hitting 52-wk high of RM7.18 on 6 Jan, AMMB fell to as low as RM5.96 on 28 Feb (near the 76.4% FR) and resuming its range bound trade within RM6.20-6.70. At this juncture, we think AMMB is consolidating well around the lower Bollinger band
(RM6.35) and the 200-days SMA (RM6.32), followed by lower retracement support of RM6.18 (61.8% FR).

RSI and slow Stochastics indicators are gradually inching upwards while MACD remains in consolidate mode. We are optimistic of a golden cross in the MACD soon to stage a
rebound and violate the RM6.50 Down-Trend-Line(DTL) after a brief sideways consolidation, before heading towards RM6.57 (38.2% FR).

A push above this level will indicate that there is more room to the upside to RM6.80 (23.6% FR) and RM7.00 psychological barrier, with RM7.18 being the final target. Accumulate but cut loss below RM6.15.

Daily AMMB Chart Shows A Violation Of Downtrend Line (DTL) Resistance Near RM6.50 Will Spur More Upside
AMMB 17-06-2011

Source: HLIB Research

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