Weakest of them all. CIMB is one of the stocks that are hit hardest since the broad market sell-off began in July. The failed test of the all-time high heralded the start of a reversal in its market outperformance since early-2009. Its relative strength line even broke below the March low.
Despite having made a short-term higher high since 26 Sept and trading above the 50-day MAV line, the stock’s relative strength has stayed flat and well below the broken support. The October price retracement was also weak as it clawed back only 38% of the July-September decline at RM7.50.
A close below the two-week low of RM7.15, also a Fibonacci retracement of the July-September decline and where the 50-day MAV lies, should see a return in selling and a possible continuation of its underperformance. Watch out for the share price to test the recent low of around RM6.50 and if violated, the stock may trade at as low as RM6.00, which is the low of February 2010. However, another break above RM7.50 may see a return of its outperformance, provided that its relative strength line breaks above the broken March support.
it is time to see..........
this stock drop further.........
but the fund managers will buy on............???
so, just wait to see...............................below RM7.......