RHB Capital ('RHBCAP') broke below its upward slopping trend lie in August, effectively signaling the end of the uptrend. The share price subsequently formed a short term rounding top and violated the RM7.08 low with a forceful breakdown. The 20-, 50-, and 100-day SMAs are all negative, while the MACD has just crossed below the signal line on the back of an expanding MACD histogram. The Stochastics indicator has also dipped downwards, confirming the down-cycle. With the indicators suggesting an increase in selling momentum, the technical picture has turned increasingly grim. Downside support can be found at RM6.95 first and RM6.80 next. However, should these support levels be violated, RHBCAP may potentially test the low of October 2012 of RM6.35.

On the weekly chart, RHBCAP's downtrend extends as  far back as June 2011. Having failed to close above the RM7.60 resistance level two months back, the share price retreated further before breaking below the 21-week Bollinger Band on Monday. The technical picture has deteriorated significantly as all three indicators, the MACD, Stochastics and RSI have dipped downwards suggesting further weakness to the abovementioned support levels.

Source: Kenanga