Just two days ago (26th March), we highlighted that traders should watch for a trigger-line breakout when an "Inverted Head-and-Shoulders" pattern was beginning to take shape on CIMB's daily chart. Indeed, follow-through momentum had caused the share price to break above the RM7.32 trigger line the very next day (+4sen) which resulted in a buy signal being triggered. Yesterday, CIMB's share price extended its gains another 33 sen to close right at our suggested technical target price of RM7.69 (Inverted Head and Shoulders measurement objective). The technical indicators have yet to show any signs of weakening, although we would expect some degree of profit taking at the RM7.72 resistance level. As such, we suggest that short term traders book in prior gains, and perhaps re-enter only when the RM7.72 is convincingly taken out. 

 

Source: Kenanga