YangZiJiang: CIMB Has Technical Buy Call. Note that stock has been falling since hitting a high of $2.09 in Jan. Prices are now testing the May 2010 low of $1.20 but house think that this support is not likely to hold either. With its MACD’s dead cross confirmation as well as a hook down on its RSI, think that the key support will give way soon. However, the triple bullish divergence seen gives the bulls a chance to turn things around, at least temporarily.
This trade is only for the aggressive traders as the risk is too high for the average investor. Even the aggressive traders should only trade small lots. The support trend line at $1.10, which could be a potential stopping point. If prices find support around the $1.08-1.14 levels, aggressive traders may opt to go long with a stop placed below $1.04. Upside resistance is at the $1.25-1.33 gap and $1.42-1.45.
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