Thursday, March 01, 2012

CIMB- consolidating within a triangle

One of the stocks that failed to participate meaningfully in the rally over the past 3-4 months is CIMB. If you look at the weekly chart below, you will see that CIMB has been consolidating within a triangle, with upside breakout at RM7.30 & downside breakout at RM6.85. The present triangle pattern could turn out to be a continuation pattern, provided the stock achieved an upside breakout at RM7.30. If that were to happen, the stock would then continue with its prior uptrend. It could also turn out differently, like what it did in April 2009 when it broke to the upside of the triangle at RM3.30 and achieved a reversal to its prior downtrend.

As such, CIMB is definitely worth a close watch.

Chart: CIMB's weekly chart as at Mar 1, 2012_10.00am (Source: Quickcharts)

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