Rubberex Corp (M) Bhd shares rallied from a low of 56 sen on Dec 16 last year, the worst level in three years to a 15½-month high of 77.5 sen on April 13 before the bulls take a breather.
In the wake of an apparent profit-taking, prices retreated slightly back to the 68.5 sen on April 28 on correction, followed by a brief band trading on consolidation before bouncing off on renewed bargain hunting interest.
This stock bounced to a one-month high of 74.5 sen during intra-day session but finished up two sen at 73 sen, as a frail principal market trend somewhat undermined investors’ enthusiasm.
Based on the daily chart, Ruberex appeared to be making a fresh attempt to resume the scaling after the recent correction process.
A breach of the immediate hurdle of 76 sen, followed by a decisive breakout of the 77.5-sen barrier would give investors the confirmation.
If that happens, the next upside objective would be to challenge the pretty stiff resistance of 94 sen or to test the upper heavy barrier of RM1.05 in the near term.
Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily-slow-stochastic momentum index were firming. It had issued a short-term buy at the neutral area on Thursday.
Also looking good, the daily moving average convergence/divergence histogram resumed the upward expansion against the daily trigger line to keep the bullish note. It had call for a buy on May 21.
In addition, the 14-day relative strength index spiked to a high of 62, up from the 445-point level on Monday.
On the back of improving technical indicators, Ruberex shares are poised to advance in the short term.
To the downside, trailing stop-loss exit is pegged at the 68.5-sen floor.
The comments above do not represent a recommendation to buy or sell.