KAREX BERHAD Stock Code: 5247
Yesterday, KAREX surged 9.0 sen (3.86%) to close at RM2.42. The share price seems to be able to find some strong support at RM2.27 (S1), as it attempted to stage a rebound play yesterday. MACD histogram is looking to stage a bullish crossover, while strong uptick in Stochastic from its oversold region is indicating a sudden surge in buying momentum. Nonetheless, we observe that the share price could face another headwind soon exerted by its downtrend resistance line. Thus, we advise investors to look out for a decisive breakout above the downtrend resistance line at RM2.48/2.50 (R1), which could offer an opportunity for the share price to climb further up towards RM2.74 (R2) next. Failure to break the aforesaid level could result in the share price resuming its downtrend trajectory towards RM2.27 (S1) and possibly RM2.00 (S2) further.
Source: Kenanga Research – 20/05/2016
The Group is principally involved in the manufacturing and sale of condoms sterile catheters latex probe covers latex sleeves and rubber product. It is the world's largest original equipment manufacturer (OEM) condom maker in terms of capacity with an annual capacity of 3 billion pieces.