RUBhd may be ripe for some profit-taking

RUBhd's share price has risen quite significantly after my second BUY call on the stock on November 22 when it was trading at RM1.56. The share closed at RM2.91 last Friday (January 5).

At that price, RUBhd was resting on its short-term uptrend line (with support at RM2.90). This morning, RUBhd has broken below this uptrend line. At 10.00 a.m., the share was trading at RM2.79/80. Unless the share price rebounds soon, the stock would have broken its uptrend line & the short-term outlook would turn negative. It is important to note that the daily MACD has exhibited bearish divergence which may signal the breaking of the uptrend line (as mentioned earlier). As such, some profit-taking at this level would be recommended while we await a confirmation over the next day or so.

Chart: RUBhd's daily chart as at Jan 5