Earlier, we have noted that Topglov had broken below the strong support of the horizontal line at RM4.70. The stock has dropped significantly since then and today, it nearly tested the psychological RM4.00 support. The other rubber glove stocks, except for Harta, have also broken their strong support. Supermx is breaking its horizontal support at RM2.70 (see Chart1), while Latexx will soon test the horizontal line at RM1.35 (see Chart 2). Kossan, which broke its horizontal line at RM2.85, is drifting lower. It may soon test its next support at RM2.50 (see Chart 3).
Chart 1: Supermx's weekly chart as at Sept 13, 2011_3.30pm (Source: Quickcharts)
Chart 2: Latexx's weekly chart as at Sept 13, 2011_3.30pm (Source: Quickcharts)
Chart 3: Kossan's weekly chart as at Sept 13, 2011_3.30pm (Source: Quickcharts)
The price of rubber latex remained quite firm, which may continue to impact the bottom-line of rubber glove producers. However, these companies may benefit from the strengthening of the USD, which we have noted earlier.
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