Date of Report: October 15, 2024
Broker: CGS International

Company Overview

Alliance Bank Malaysia Berhad provides a full range of commercial banking services for retail and institutional customers. The bank offers a variety of products, including savings and current accounts, fixed deposits, investments, loans, insurance, wealth management, phone banking, and business cards. The bank operates primarily in Singapore and Malaysia.

Technical Analysis and Stock Movement

As of October 15, 2024, Alliance Bank Malaysia’s stock price has shown bullish momentum, supported by the technical indicators and recent market performance.

• Current Stock Price: RM4.48
• Entry Price Range: RM4.38 to RM4.48
• Key Support Levels:
  • Support 1: RM4.26
  • Support 2: RM4.15
• Key Resistance Levels:
  • Resistance 1: RM4.59
  • Resistance 2: RM4.72
• Stop Loss: RM4.25

Price Trends and Indicators

The stock formed a long white candle after consolidating above its 50-day exponential moving average (EMA) for several weeks. Alliance Bank Malaysia is on the verge of breaking out of a two-month rectangle consolidation pattern. The stock is trading above all the major moving averages, indicating further potential upside.

Key indicators like the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) have strengthened, signaling an increase in buying momentum. The bullish momentum suggests aggressive traders could consider going long at this point, or buy during market weakness.

Target Prices

Based on the current market movement and technical setup, potential upside targets for Alliance Bank Malaysia are:

• Short-term Target 1: RM4.72
• Long-term Target 2: RM4.90

Investment Strategy

The stock is positioned for a potential breakout beyond its all-time high of RM4.59, with targets set at RM4.72 and RM4.90. For aggressive traders, there is a recommendation to enter at the current price range, with a stop-loss set slightly below the last swing low, at RM4.25. The bank’s technical signals are suggesting the bulls are regaining strength, and further gains can be expected if the current momentum holds.

Conclusion

Alliance Bank Malaysia is showing strong bullish signals, with momentum building for a potential breakout. The analysis suggests that this stock is primed for growth, offering potential gains for traders willing to capitalize on current market conditions.

Report compiled by: CGS International, Malaysia