CIMB (1023) More upside awaiting in 2017
(chart courtesy of UOB KayHian Techanalyzer)
CIMB is in the midst of testing the upper trendline of leading diagonal as shown in the chart above.
Completion of leading diagonal will see CIMB to stage a correction (dip) before resuming the larger Cycle wave of uptrend.
Brief description of the price structure history for CIMB:
CIMB started the ((A))-((B))-((C)) expanded flat in Jan 2011, and the primary wave ((C)) terminated in vicinity of monthly 200SMA in Jan 2016. Since then CIMB has been challenging higher price level in a leading diagonal fashion. CIMB recently has broken the long term downward trendline in Feb 2017, indicating the CIMB's intention to soar higher in 2017.
(chart courtesy of UOB KayHian Techanalyzer)
A closer view on the daily chart reveals that break out of the downward trendline happened with a powerful run away gap, as shown in figure above.
The figure above also further highlight the inverse head and shoulders bottoming pattern unveiled by CIMB.
Prognosis for price movement of CIMB:
As leading diagonal always occur in a five-wave manner, CIMB is expected to extend another up-leg to challenge the upper trendline of leading diagonal shown in the second diagram. After that, CIMB is expected to dip in price before continuing the larger wave degree (Cycle wave) of uptrend.
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