Technical Outlook

CIMB: Uptrend Intact

Publish date: Mon, 17 Jun 2024, 03:28 PM
This blog is about technical outlook for stocks listed in Bursa Malaysia.

Trend Analysis: Uptrend

Uptrend: The stock appears to be in a strong uptrend since late 2023, making higher highs and higher lows consistently. This is evident from the price action staying above the 20-day, 50-day, 150-day, and 200-day moving averages.

Source: KLSE Screener / Trading View

Moving Averages: Bullish

20-day MA: 6.39

50-day MA: 6.16

150-day MA: 5.83

200-day MA: 5.65

These moving averages are sloping upwards, confirming the bullish trend.

Support and Resistance

Support Levels:

The 20-day MA (6.39) and the 50-day MA (6.16) serve as immediate support levels.

Psychological support can also be seen around the 6.50 level where the price has consolidated previously.

Resistance Levels:

The current resistance is around the recent high of 6.92, and a breakout above this could indicate a continuation of the uptrend.

Bollinger Bands Analysis

The stock price is currently near the upper Bollinger Band (6.57 MYR), which might suggest that it is in an overbought condition in the short term. However, in a strong uptrend, prices can remain overbought for extended periods.

Volume Analysis

The volume of 22.3M indicates strong trading activity. Higher volume on up days compared to down days further validates the uptrend.

Relative Strength Index (RSI)

The RSI (14) is at 58, which is in the neutral zone. This suggests that there is still room for the stock to move higher before becoming overbought (RSI > 70).


Bullish Outlook: The overall technical setup indicates a bullish trend with strong support from various moving averages and trading volumes. The uptrend is well-supported by higher highs and higher lows.

Potential Pullback: There might be a short-term pullback due to the price nearing the upper Bollinger Band, but the primary trend remains upward.

Monitoring Levels: Watch for the stock to hold above the 6.50 support and look for a breakout above 6.92 for confirmation of continued bullish momentum.

Given the analysis, the stock shows a healthy bullish trend with potential for further upside, provided key support levels are maintained.

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