Malayan Banking is set to rebound from its recent consolidation phase as it attempted to break the immediate resistance. Premised on strong volume, the stock bounced off from below to breach the 21-day SMA line yesterday, indicating strong buying interest. The bullish bias is expected to emerge if it manages to break above the MYR8.35 immediate resistance level which may see the stock travel towards the next resistance of MYR8.60, and then MYR8.90. However, if the stock reverses below the MYR8.25 support level, this expectation will be reversed.

Source: RHB Securities Research - 18 May 2021