Awaiting “Double Bottom” to be Confirmed (OSK)

While CIMB has been consolidating the sharp decline recorded on the week of 22 Aug 2011, there is a possibility that the stock might have already constructed a new floor at the RM6.56 level after testing this level two times in 4Q2011. A break above RM7.58 would confirm a “Double Bottom” bullish-reversal formation. Judging from the solid rebound that occurred on the last week of 2011 and yesterday’s stronger volume, CIMB may be able to carry on with its upward momentum hereafter. Traders could accumulate the shares ahead of a potential violation of the RM7.58 level. We are eyeing the RM9.00-RM9.17 area as the upside target. Our cut-loss level is pegged at below the RM6.56 level.