CIMB is poised to stage a technical breakout after testing the immediate resistance level with strong volume. The stock printed a bullish candlestick and crossed above the 21-day SMA line, showing that bullish momentum is picking up again. If it breaks past the MYR7.25 resistance level, we expect follow-through price action to test the next resistance at MYR7.60, followed by the one at MYR7.90. A fall below the MYR7 support level would kick off the bearish phase.

Source: RHB Securities Research - 7 Aug 2024