Bullish Breakout: RHB & Utama

What a great breakout, right out of the Flag as predicted. Both RHB and Utama broke out of the week long Flag consolidation to post superb immediate gains of 20%. Excellent! . Volume was high even though the movement started only after 4.00 pm. Both stocks are linked to each other because of RHB Bank & the EPF buyout proposal.

Will this lead to prices going higher? The next resistances are:
RHB: 1.54, 1.93 & 2.50 ...... Utama: 1.28, 1.37, 1.69 & 2.00.

Based on the flagpole measurement the Target Prices are: RHB: 1.42 ...... Utama: 1.32

Hence the possible TP for the stocks are: RHB: 1.54 ....... Utama: 1.37

This is assuming prices are only stopped by the stocks' resistances. So upside is:
RHB: 0.23 .......Utama: 0.16

However since prices rose very strongly, there may be a pullback first before it goes for the target. Chasing the stocks now would be risky, buying on pullback would be the better strategy. Of course you should have bought on breakout from the Flag which in my last article was at RHB 1.14 & Utama 1.00.