Watchlist: RHB Another Pennant Formation?

RHB has risen strongly from 2 to 22 June based on EPF's decision to substantially own RHB and its buyout proposal to Utama Banking group. It rose and formed a Flag formation bet 5 & 16 June which proved itself as a bullish formation when prices broke out strongly from the Flag on 19 June & rose quickly from 0.86 to 1.16 on 22 June.

It is now in correction mode & appears to have formed a Pennant another bullish formation. Volume has also fallen considerably confirming the pattern. Based on the Flag, the Pennant will be a continuation pattern so it indicates a continuation of the previous rising trend.

The target price is 1.43 based on the measurement of the "Flag pole" of the Pennant though it is possible that it may even rise to 1.52 which is its next resistance level.

Buy on high volume breakout between 1.14 & 1.16. However, a break below 1.08 will invalidate the Pennant formation.