Technical Rebound - CIMB

Cimb (1023)

I observed that 2 or 3 long black candlesticks gave me an opportunity to buy. Though I'm aware of Three Black Crows candlesticks. My understanding of the candlesticks is based on http://www.thepatternsite.com/ThreeBlackCrows.html

Cimb showed 3 black long candlesticks 3 weeks ago and the price formed a support line which eventually moved up for a 4.4% profit.

This week, a 3-black not so long candlesticks were seen again. Are we going to see another 4.4%? Bear in mind that KLCI had dropped 81 points in the week.

Let's do more back testing on the stock.

Starting from Valentine Day 2013, 4 black candlesticks were formed. A drop of 3.8%. If I had bought on the closing time of the fourth candlestick, 4.2% profit was achievable.

On 12th March 2013, 3 black candlesticks with the fourth one a hammer, dropping a 3.8%. If I had bought on the closing time of the hammer, 4.3% profit was attainable.

Hmm.. I need more evidences.

After 5th September 2012, 5 black candlesticks appeared after dividend was given. In fact, 5th black candle was a hammer. Buying at closing time on the 5th candle could generate me 5.8% in a week.

 After a shooting star, 3 black candlesticks were seen. A drop of 6.3%. Buying on the 3rd candlestick, should be able to gain 4.5%.

However, if one bought at hammer during early 2013, it would be a long long waiting game. But the result turned out to be a favorable one. 6.2%

This week alone, a drop 7.6% on Cimb counter. RSI is inching up but the rest in negative territory. Yesterday, a bullish harami. Today's low is lower than yesterday's low. Am I taking the bait for technical rebound play?