Hi, any sifu here can tell me this “overbought” in red? Does this indicate the price may drop anytime soon? TIA 🙏

Question: When can “overbought” be a good thing?
Answer: When something becomes really overbought.

So can an RSI overbought condition ever be a good thing? Absolutely. When the RSI is “extremely overbought” with a value above 80, the upside momentum has become so great that the price will likely continue in the direction of the primary trend, following a brief corrective pattern.

Source: https://stockcharts.com/articles/mindfulinv...overbought.html


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Also, according to my technical analysis, you can see these few things below

1. The short term EMAs are crossing the long term EMAs: golden cross (Bullish)
2. Smart money just rotated into the finance sector with increasing interest: latest red bar is >50% and it is still increasing (Bullish)
3. Bull Flag breakout - verified with pro trader BOon3 from thread "Traders' corner - Gone Fishing" (Bullish)
4. The trend reversal is supported with huge volume

From sentiment point of view, now the institutional investors are selling gloves and buying recoveries. So, sentiment is also bullish.

Yes, you can expect corrective brief corrective pattern any time soon in the finance sector (already corrected once). However, since the upside momentum has become so great, the uptrend is likely to stay. So, you should make use of the dips as your entries.

Although the uptrend is most likely there to stay, I personally think that there are better finance counters out there, e.g. BIMB. Reasons?
1. Lower PE, Similar ROE, lower PB
2. Still have a lot of room to reach pre-covid price, while MBB has almost reached pre-covid price.
*I also want to clarify that pre-covid price is not the maximum price that MBB could reach. It might break it and move higher.

Anyone of you starting to sell off your holdings considering the price now and anticipating a further drop in coming months?

I've been collecting when its 7.xx

Top up chance incoming?!?? 👀👀👀👀

Didn't I predict correctly?😆

Wasnt expecting that. Didnt expect EPF selling for RM10k will be so impactful

Who knows.

Surprisingly, EPF doesn't keep some cash on hand. 👀👀

Or probably not enough

This post has been edited by AthrunIJ: Nov 30 2020, 05:58 PM

WTF ! free fall.

🤤🤤🤤🤤🤤🤤🤤

Look like fake fall? Tomorrow rebound ?

fall a little bit only, not free fall la ....

if fall to ~RM7.20 then we talk.

Don't so greedy la.

Bank stock fall 30sen and more is alot ! And will it continue tomorrow ?

Sapu slow slow.

This post has been edited by ozak: Nov 30 2020, 08:47 PM

Buy BIMB only, see BIMB green today

Stop promoting your bimb that you bought at high price. This is Maybank tered

Not at high price. I am positive . Not planning to sell also.
Just sharing better similar counters ma.

MBB share price of RM7.9
Analysts FY2021 NP FY2022 NP 2021 PE 2022 PE
PBB 7050.8 8008.2 12.60 11.09
HLG 7223.7 8009 12.29 11.09
MIDF 7642 8615 11.62 10.31
Affin 6173.8 7216.6 14.38 12.31

PM me if you want the compiled data for other banks

Bugger off. No body want your amateur analysis. Go open a bimb shareholder thread to promote.

Sorry bro, you seem offended

If EPF selling why RHB didn't drop?

My take is today is last day of Nov. Meaning it's Msci rebalancing day. Chances are some large ETFs are selling the large cap banks, PBB. Maybank, Cimb because of change to EM index. In other years, domestic insti will sapu, but maybe the recent strong price run up makes them reluctant to sapu. Also absence of short sell perhaps make the drop worse this year.

N This is short term effect only.

This post has been edited by Cubalagi: Nov 30 2020, 08:50 PM

Ah, true. Another point of view.

Thanks for info

Because Maybank drop. Mood no good