Thursday, October 22, 2020

Glove Stocks: Is That A Temporary Top?

Yesterday, glove stocks dropped sharply. The sell-off came after a 4-day lull in upward price movement for most of the big 4 glove stocks (except for Harta). The price drop yesterday broke the uptrend line in the current rally for most of the glove stocks, which began on 11 September. Unless the share prices can recover above the violated uptrend lines, the glove stocks could well have made a temporary top. 

Chart 1: Harta's daily chart as at Oct 21, 2020 (Source:

Chart 2: Kossan's daily chart as at Oct 21, 2020 (Source:

Chart 3: Supermx's daily chart as at Oct 21, 2020 (Source:

Chart 4: Topglov's daily chart as at Oct 21, 2020 (Source:

With increasing news flow of the imminent arrival of vaccines, investors would have to weigh the return from holding onto their glove stocks against the risks that the rally may have peaked. In times like this, investors should consider taking some cash off the table. Redeploying the proceed to some deeply sold-down stocks, like AIRPORT or GENTING, may be a good diversification strategy to benefit from the arrival of the vaccines and the normalization of life as we know. Good luck! 


Unknown said...

Pls study the fundamentals rather than just read from the technical charts.

My Views said...

Professional trader should have understand that this few days is vwap price fixing for the call warrant due on month end, price will definately suggested to press as long as IB not willing to pay more for the settlement, its nothing to do with the vaccines news and etc..

healthywealthy said...

I concur with “my view” on the sell down being caused by those call warrants maturity. Hence in situations such as these, I would have sold down earlier a week or two and buy now when its down.