Friday, October 28, 2011


CMA: CIMB has Technical Sell Call. House note that they were stopped out of its short term buy on the stock previously, as the rebound failed to materialize, suggesting that it is still in correction mode.

The bullish divergence saw on both its MACD and RSI likely suggests that a possible triangle is in the making. Furthermore, the MACD and RSI have stalled at their respective resistances, which would suggest that bulls have to be very cautious. As long as prices stay below the critical resistance at $1.375, the triangle view is still intact. A sharp thrust downwards is likely once this triangle pattern ends and this thrust could send prices to below the $1.13 low, probably testing the psychological $1.00-1.05 next.

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