SIA Engineering: CIMB has Technical Sell Call. Note that after violating its double top neckline band at $3.85 in August, prices quickly formed a bearish flag pattern. Last week, prices fell below this flag, which signals that the next downleg is likely underway.
Both indicators show that the bearish trend may resume in the coming days if not weeks. The MACD turned down after testing the zero line, which is a negative signal. Traders should only take short positions now with a stop placed above $3.96 or $4.10, depending on one’s risk tolerance levels. A break below $3.75 would likely confirm that prices are heading lower again to retest the $3.45 lows. The following supports are at $3.35 and $3.20.
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