Maybank may have a bullish breakout

Maybank may have finally broken above its horizontal resistance at RM7.00-7.08. Maybank has been enjoying a steady increase in volume traded over the past 2 months, which is a good sign of an accumulation in anticipation of an upside breakout.


Chart 1: Maybank's daily chart as at Mar 5, 2010_9.30am (Source: Quickcharts)

If Maybank (presently trading at RM7.13) is too pricey for your limited funds, you may consider Maybank-CJ which has an exercise price of RM5.119; exercise ratio of 1.7963-to-1; and expiring in August 2010. At the present price of RM1.15, Maybank-CJ is now trading at a premium of 0.8% only.


Chart 2: Maybank-CJ's daily chart as at Mar 5, 2010_9.35am (Source: Quickcharts)

Maybank-CK has a similar premium as Maybank-CJ but it will expire in May 2010, while Maybank-CL & Maybank-CM has premium of 6-8%.

Based on the above, I believe Maybank could be a good trading BUY. Maybank-CJ would be a good proxy to play on this breakout.