Topglov: Why Not?

The rubber glove sector has seen differing fortune in the past 1 year. While Kossan & Harta have been rising, Topglov & Supermx has been sliding. After the news of Supermx's boss being charged for insider trading (here), the price dropped even more before rebounding.

This sector will be the beneficial of lower raw material cost as well as lower energy cost plus enjoying better return from weaker MYR. For all these benefits, even the weaker players will reap the benefit. Thus, we can see that Topglov has recovered back to RM5.00 yesterday and today, it is trading at RM5.13 as at 4.30pm.

Looking at Chart 1, we can see that monthly MACD &  Slow Stochastic have both hooked up. The last time we saw these double hook-ups, the stock rallied. In 2009, it went from RM3.50 to RM7.00. In 2012, it went from RM5.00 to RM6.50.

Based on better prospects and positive technical outlook, Topglov could be worth considering for medium-term investment.


Chart 1: Topglovx's weekly chart as at Mar 11, 2015_4.30pm (Source: ShareInvestor.com)


Chart 2: Kossan's weekly chart as at Mar 11, 2015_4.30pm (Source: ShareInvestor.com)


Chart 3: Harta's weekly chart as at Mar 11, 2015_4.30pm (Source: ShareInvestor.com)


Chart 4: Supermx's weekly chart as at Mar 11, 2015_4.30pm (Source: ShareInvestor.com)

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Harta, Kossan, Topglov & Supermx.