Top Glove


  • Support Line Premium
  • Tuesday, 25 Feb 2020

Top Glove Corp Bhd experienced a spike in buying momentum on Monday, which ended a five-day correction phase.

The stock managed to hold above the 50-day simple moving average (SMA) and bounced higher in a bid to resume an uptrend.

There is a bullish bias on the daily price chart following the sharp rally in January. A spate of profit-taking too the counter into correction mode, although Monday's positive performance could a another change in the share price trend.

The share price is approaching the short-term 14- and 21-day SMAs, a positive crossing of which would signal the return of bullish sentiment in the counter.

Should the buying interest continue, the share price could be seen headed towards the resistance of RM5.88. Next support is found at RM6.10 , which represents the stock's recent peak.

Support for the stock rests at RM5.16, which is just above the 50-day SMA. Further support is pegged to RM4.83.

The technical indicators are looking optimistic, having returned from oversold levels to suggest the start of a rally.

The slow-stochastic momentum index is at 22 points, after the percent K oscillator passed the percent D oscillator to give a “buy” signal.

The 14-day relative strength index is also looking positive as it crossed higher into netural territory at 41 points.

Meanwhile, the daily moving average convergence/divergence (MACD) line has slowed its falls as it continues to descend towards the zero line. The MACD is suggesting a positive trend although momentum is yet to pick up again following the recent correction.

Trading activity in the counter remains healthy with Monday's volume keeping on a par with the number of shares traded over recent weeks.

The comments above do not represent a recommendation to buy or sell.
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