Technical Analysis of BRAC Bank on 25 Jan 2017

Technical Analysis of BRAC Bank on 25 Jan 2017

This is no buy/sell recommendation - just a trial to see if Technical Analysis (works to an extent) in Dhaka Stock Exchange.

BRAC Bank is a good company with growth potentials.

Fundamental Analysis: It is a growth company that has been increasing Cash Dividends. Business seems to be good. 42% shares are held by “Foreign” clients. Only ~6% free float. It seems market is pricing bKash’s expected profit into BRAC Bank’s price.

	2013	2014	2015
Profit	1,419	2,102	2,184
EPS	2.20	2.96	3.08
Dividend	10%B + 10%C	20%C	25%C
NOCFPS	11	15	14

PE ~ 14

Now to the Technicals: BRAC moves in a classic technical formation with up moves followed by a period of consolidation (retracement) before the next up move. It is above a 5 year high with no overhead Resistance – sky is the limit (similar to BNICL chart http://imti77az.blogspot.com/2017/01/technical-analysis-of-bnicl-on-17-jan.html).

Recently it broke 68 Resistance (which should be Support from now on) and faces Next Resistance at 72. Now if it re-tests 68 from above and then moves up . . . we might see a Bullish move.

It is actually a share sought out by Fundamental Analysts – break out traders might risk it (stop loss at 66).

68 might seem pricey? A year from now, we would know after checking back ...

Bulls starting last in line might be caught by the bears!!!