Recently, it was reported that MAYBANK is considering a potential merger plan with RHBCAP. On the back of the merger news, MAYBANK’s share price rose to close at RM8.79 (+19.0 sen), with a strong surge in trading volume. All key indicators (MACD, Stochastic Indicator and RSI) are hooking upwards, suggesting that strong buying interest has emerged. Zooming in on the Stochastic indicator, the strong reversal from its oversold situation signals a trend reversal from its recent downtrend. Should buying interest continue to grow, we believe the share price can rally towards the immediate resistance level of RM9.00 (R1) and even RM9.23 (R2).

 

 

Source: Kenanga