Thursday, February 2, 2012

CIMB: Technical rebound in the pipeline

Stock to watch: CIMB (RM6.93 - Trading Buy)

CIMB: Technical rebound in the pipeline

During the recent banking stocks correction, CIMB was one of the hardest hit bank stock (FIG# 4) as it tumbled to as low as RM6.56 (26 September 11) and consolidating within the RM6.60-7.50 band before closing at RM6.93 yesterday.

Currently, the momentum and trend indicators are grossly oversold (FIG#3) and are showing signs of bottoming up. Hence, the stock could test higher ground over the next few sessions to RM7.04 (540-d SMA) and RM7.12 (middle Bollinger band). Nevertheless, a more bullish outlook would only appear if share price manages to close consistently above RM7.12. The next upside targets are RM7.40 (upper Bollinger band) and RM7.64 (200-d SMA) levels.

Immediate supports are RM6.83 (lower Bollinger band), RM6.64 (24 November 11 low) and RM6.56. Cut loss below RM6.64.

Daily CIMB - Grossly Oversold And Indicators Are Bottoming Up
CIMB 03-02-2012



Source: HLIB Research

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