Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU) – May rise to $7.50-$7.80 levels

Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU), a Japan based banking entity, kept rising for the fourth consecutive session and ended the day with a gain of 1.85%. In the last few weeks, a lot of volatility has been evident in the stock as it moved in the range of $6.20-$6.70. Still that can be well explained by the proximity of the 52 week high, which is less than 2% away. The volume at 7 million was much higher than the daily average of 1.3 million.

Have technical analyst identified a strong wedge in MTU?

Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU) recently received a “buy” rating from Zacks with a price target of $7. The analysts noted the organic growth in an upswing in revenues, deposits and loans. The reported net income of the company for the first 9 months of fiscal 2014 increased on a y-o-y basis. One must consider the boost the company received from the consolidation of the Bank of Ayudhya (Krungsri) too. Zacks expects the diversified product mix and strong business model to help the company to strengthen its bottom line going forward and tackle a soaring expense base, heightening competition and volatility in the Japanese economy successfully.

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Last month, Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU) received seven 2014 awards in the Americas from IJGlobal magazine, improving the image of the company considerably.

The short term strength in the stock is considerable and if the last correction turns out to be an Irregular Flat, according to the Elliott Wave Theory, then the current rally can take the stock much higher in the next few weeks. The long term chart shows the entire price action in the last 5-6 years to be contained in a perfect channel and that channel presents a stiff resistance around $7.50-$7.80 levels. The current investors can enjoy the rally and book profit near $7.50 levels to protect it.

About the Author

Barry is a senior journalist at Us Markets Daily. He reports, shoots and edits many of his own stories by himself.

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