If we are worried that the broad market rally may not have continued, we can take comfort that the Finance index has just broken above the wedge formation (CDEF) at 16500. This breakout means that the banking stocks rally is likely to resume.
Chart 1: Finance's daily chart as at Jun 5, 2017 (Source: Shareinvestors.com)
We can position ourselves in some of the laggards or recently beaten down banking stocks and wait for them to re-join the rally. These include AFG, RHBBANK and AMBANK. They are mostly trading near their uptrend lines as well as supported by strong horizontal lines. The reward to risk for selecting these stocks is in your favor as compared to buying into CIMB or Maybank.
Chart 2: AFG's daily chart as at Jun 5, 2017 (Source: Shareinvestors.com)
Chart 3: RHBBANK's daily chart as at Jun 5, 2017 (Source: Shareinvestors.com)
Chart 4; AMBANK's daily chart as at Jun 5, 2017 (Source: Shareinvestors.com
http://nexttrade.blogspot.my/2017/06/banking-stocks-rally-resumed.html
