DBS: CIMB has Technical Sell Call. Note that the bulls tried to fight back after prices violated triangle support. However, sellers at the support-turned-resistance trend line proved a tad too strong. Looking at the chart, think there is still risk to the downside. Yesterday, prices broke below its previous swing low of $13.35, indicating that the correction is not over yet.
Technical landscape remains subdued. MACD is falling deeper into the dungeon while RSI has hooked downward. These indicators can stay depress for some time before stronger momentum set in. As the bears have the upper hand here, strategy is to unload on strength, preferably near the $13.62-14.14 resistances. On the downside, next support levels are $12.50 and $11.16. Stop loss at $14.30.
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