Jan 22, 2014

Rebound signal for Kossan?

Kossan Rubber Industries Bhd (7153) Industrial Products – RM4.19.

kossan above: Kossan Daily Chart (click to enlarge)

Kossan’s  candle  broke  out  of  its  short-term  flag  formation  yesterday.  The  breakout  also resulted in its core indicators perking up and pointing towards more upsides. The lagging MACD’s slide has also abated and is starting to flatten. With its core indicators strengthening and the candle breaching the upper line,  the stock is worth a Short-term trading buy if there is follow through buying today.

Failure  to  stage  follow  through  buying,  on  the  other  hand,  leaves  a  neutral  call.  The resistance is at RM4.45. The support, meanwhile, is at the upper line of the flag formation at around RM4.05.

by Mercury Securities

The Company is principally involved in investment holding and manufacturing and sales of rubber products. The principal activities of the subsidiaries are manufacturing and trading of latex ..