RHB Capital's share price has been trading sideways with a slight upward bias since its mid-May lows. With the thin trading range coming into the end of June, we saw a short-lived breakout before the Bollinger Band has contracted again. The breakout has provided us with a resistance-turned-support level at RM7.42 and as the share price retreated towards this return line, yet another buying opportunity has presented itself. The short term indicators are also supportive of this view, with the MACD line trending upwards as well
as the 20-day SMA firmly above the 50-day SMA. Further support is also likely to be provided at the RM7.30/35 levels while immediate resistance is likely to be met at the previous high of RM7.65 and
RM7.75.

On the weekly chart, a trend line can be extended as far back as September last year. With the formation of this trend line, we could expect a solid level of support with an upward bias. The share price has also penetrated both the 20 and 50-weel SMAs this week, further reinforcing our positive view on the stock. Should momentum support a golden crossover of the 20 and 50-week SMAs, we may see further
gains to come. Failing which, losses for the stock may still be cushioned by the strong support line at RM7.30/35.

Source: Kenanga