Hassan_Abdullah

TOP GLOVE CORPORATION BERHAD (29-DECEMBER-2020)

MYX:TOPGLOV   TOP GLOVE CORPORATION BHD
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The price eventually breached below the neckline and completed the double top pattern, marking the completion of distribution phase. Since the last update on 24-Nov-2020, the price made several attempts to penetrate above 50-day EMA but futile. The bearishness is further strengthened as the price is now currently trading below 200-day EMA as the last support and below the red-kumo cloud.

The price is expected to continue its down-selling pressure on mark-down phase with an immediate short term target price of RM5.3 which coincides with 50% retracement of previous rally.

The Star newspaper made a positive headline on Top Glove today. In a nutshell, the company is confident of robust demand over the next two years. This news may indicate a positive recurring income and super profit in the future with possible high dividend payout. Thus, it is foreseen that this current downtrend provides a golden opportunity to buy back the shares at a lower price in order to get more dividend entitlement as well as to increase the controlling power of the company.

Note: This trading idea is for education purpose only and not to be construed as a buy call. The mantra of TAYOR and caveat emptor shall apply.

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