Traders & investors have taken up position in shares of rubber-glove makers, which are expected to benefit from increased demand among health workers & security personnel. From the charts below, we can see that Topglov & Kossan may have bullish breakout of their respective triangles & they should continue onwards in their present short-term uptrend. Topglov broke above its ascending triangle at RM6.20, while Kossan broke above its "descending triangle" at RM3.70. While both breakouts were not accompanied by significantly higher volume, I believe the breakouts are real. You may choose to take a small position now & add to it on pullbacks.
Chart 1: Topflov's weekly chart as at 12/6/2009 (Source: Quickcharts)
Chart 2: Kossan's weekly chart as at 12/6/2009 (Source: Quickcharts)
3 comments:
Hi Alex..
Can you comment about COMPUGT. Because the current price is so cheap do you think it will rebound? or it have somethings wrong with the company.?
Hi teh,
Compugt is in a downtrend and this downtrend is still intact. This is an especially pertinent point because this stock did not break above the downtrend despite the present strong market. That raised questions.
It was reported that the stock is under selling pressure due to a margin call on a substantial shareholder (as per a newspaper report today). Is that so? If the company is financially sound, we can expect the other substantial shareholders or insiders to accumulate the stocks at the present low prices. Why did this not happen? Could there be something else that is driving the selldown? Judging by the volume, I believe a few substantial shareholders could be offloading their shares in the market.
It is never a good idea to buy a stock that is in a downtrend, especially in a bullish market, unless you know something that the general public does not. Or, maybe even the insiders do not.
Hi Alex,
Thanks a lot for you opinion.today market look not so good...A bit worrying about my TA-wa that still in the convertion period..
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