Wednesday, February 16, 2011

Straits Asia

Straits Asia: CIMB Has Technical Sell Call. Note that stock broke below its uptrend channel support as well as its 50-day SMA last week. Yesterday’s long black candle was likely a confirmation, suggesting a gloomy outlook for the stock in the near term…

A test of the 200-day SMA at S$2.27 is likely if the $2.40 support gives way. Upside resistance is seen around the $2.60 levels, where both the channel support turned resistance and its 50-day SMA meets. Recommend aggressive traders could short with a break below the $2.40 low, targeting the 200-day SMA and below. Stop could be placed above $2.57 or $2.60.

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