City Dev: CIMB has Technical Sell Call. Note that stock broke below its key head and shoulders neckline support trend line early last wk and hit a low of $9.66. The rebound thereafter tested this neckline again but the bulls failed to push prices back above this resistance. A break back below the $9.66 levels would likely suggest that there is more downside ahead.
With its RSI and MACD heading lower again the odds continue to favour the bears. However, there is a note of caution that there is a possible bullish divergence forming on both indicators. Renewed buying strength that lift prices back above the neckline at $10.25 and the recent high of $10.38 would likely trigger stop loss. Recommends continue to sell into strength and expect prices to drop below $9.66 to close the gap at $8.57-8.88. The next strong support is at $7.71.
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