RHBCAP has been a long-term valuation laggard in the banking sector over the past one year. We believe it is worth a re-look as the stock currently offers a decent ~5% upside from our banking analyst target price. Yesterday, RHBCAP surged another 6 sen (closing: RM8.35) to stage an 11-month ‘Symmetrical Triangle’. Indicator-wise, the daily MACD has just crossed over the zero-line, and hence we believe that bargain hunting opportunities could be seen for this long-term laggard play. We suggest traders who buy into the share to take profit 3 bids below the “Symmetrical Triangle” measurement objective at RM9.54, while employing a strict stop-loss at RM8.30. 

 

Source: RHB