CIMB Retail Research has a Sell call on Top Glove at RM6.80 after the stocks violated its short term uptrend support yesterday following three days of losses.
In its technical outlook issued on Thursday, July 22, CIMB Research said the world’s largest glove maker’s share price is currently finding some support around the 30-day and 50-day SMA, around the RM6.52 to RM6.74 leve.
“We do not expect the bulls to be able to keep prices up for much longer following the trend line breakdown. Technical landscape looks fragile with RSI now below its support trend line and MACD about to confirm its dead crossover. There are also bearish divergences seen on both its MACD and RSI, which makes the stock a SELL,” it said.
CIMB Research said any rebound towards the support turned resistance trend line at RM7.00 is a chance to sell.
“We expect prices to fall to at least the May low of RM5.59, if not lower. Its 200-day SMA at RM5.65 could also attract prices towards it,” it said.
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