After the general election in May 18, the climatic sells continued for 6 weeks and wiped out all the gain in the first half of 2018. The stock found support at RM8.40 but the penetration of 65-days moving average indicated it was weak and possible occurrence of new downtrend ahead.
In July 18 bull market, the automatic rally pushed the stock up with 10.84% gain. It then held above the short term support of RM9.20 for 13 weeks. Here, the demands were not able to overcome the supply and it tested the 65-days moving average again. In Dec 18, the death cross confirmed the bearish pattern.
After travelling below the moving average lines in Dec 18, the stock bounced at RM8.88 support and gained 4.85%. Nevertheless, the gain was not able to reverse the death cross and it dropped 2.77% in March 19. In April 19, the false breakout implied a possible further bearish pattern. Although the strong demands maintain the price above the support, the sellers were in control and the stock broke the support in July 19.
I reckon the present bearish pattern will test the next support of RM8.40. The strategy to trade support line requires constant monitoring and cut lost price must be determined before entering a trade. According to the present analysis, Maybank is bearish and no trading opportunity. (Click here for the full picture)