What's Now For CIMB (January 2012)

Whoever is in charge of this company is doing a damn good, fantastic, superb and wonderful job. He is truly number the best fitted person in bringing up the reputation of CIMB Bank.
I did not do any research at all in the news but what my comment and my praise is based on my observation of CIMB present in the market. CIMB Branches are all located in superb location mostly facing the main road. Previously my perception of CIMB is a not so up to standard bank and run and manage by laid back bank's employee. However, my perception has changed now. CIMB in my mind now is the number 1 bank in Malaysia which have very good potential of penetrating the global market.

Anyway, back to the important topic which is "What's Now for CIMB". As per the long term chart above, CIMB has already broke it uptrend line and is currently consolidating at the RM 6.50 to RM 7.50 trading range. Most of the technical indicators that I have heavily relied on such as MACH, Stochastic and Bollinger Band did not really show any indication whether this stock is moving up or down based on my analysis.

As for the short term chart, it shows that CIMB is currently trading side way with a down trend bias.
MACD and Stochastic indicators are now pointing toward negative down move for this stock for the short term.
I have a feeling that CIMB might head down to test the important support at the RM6.60 level. It is based on my sixth sense looking at the chart as I do not have concrete points back up for it.



As for the EPS and Profit, CIMB has shown good improvement quarter over quarter. It has managed to break record one quarter after another in term of profit and EPS.

Even though now it is looking finger licking good for this banking stock, however, I must caution all investor and speculator who are currently trading heavily in banking stocks.

I believe for the coming 1-2 years time, Malaysia will get into a deep depression. It will all start from China and spread to the whole world. Malaysia biggest hit will be in the property sector, however, banking stock will be the hardest hit as well due to the crazy amount of personal and property loan that banks are currently giving out. I do not need to explain much, for all the smart people out there, you know that the property crisis is coming and the Malaysia banking industry like the United States will be hit the hardest.

Therefore, for those who wants to make good profit trading on any banking stocks in Malaysia might want to think twice whether the risk is worth taking, especially for the long term investor.