Hi folks, I hope you are doing well in your stock contest so far?
As per discussion on Rubber Glove stocks in my previous post, they are expectedly to continue to face selling pressure this week, after a reversed bullish day on 9th Sept. Their prices are continue to drop due to the further strengthen of Ringgit against US dollars. Apart from that, latex price remain at high level of RM700. Compare to previous month, the latex price has slightly went down.This is a good sign. On the other hand, Ringgit has no sign of weakening for the time being, as Bank Negara will continue to hike the interest rate while US economy is still at the bottom of recovering. This could be short to mid term.
As for price chart analysis, Supermx has broken it's strong support level of RM4.92, and have a pullback on 9-10th Sept. Unfortunately, it is a sign of continue to fall with such a normal pullback. Now, what attract me is the join-in of EPF as a shareholder. It came in early of this month to support the price falling and holding 5.5% of Supermx shares. And I also heard a local famous FA blogger has call to chip-in earlier at RM4.8x. Perhaps EPF and that fellow have noticed an opportunity here, but not the management. The management just do nothing!
Actually there is a vague support level at RM4.56, which is the lowest price of Friday. If it is broken, perhaps another strong support level will be RM3.81. This support price makes me recall of the time when I was collecting Supermx stock on last year.
So, buy, sell or wait now? I have a small buy at the bottom on yesterday morning. Let's see how it goes on next week before I release more bullets on it.
Let's look at rubber glove leader, Topglov, on the other hand, has a fantastic rebound at the strong support line of RM5.60. In addition, local and foreign fund managers also utilizing this opportunity to increase their shares lately. 1 thing you may need to worry. RM6.00 is a strong resistant level where the price might rebound and facing selling pressure again.
In view of their fundamentals, both of them look like a good bargain stocks to buy for now. But the negative news are still spreading, including the downgrade calls from the broker houses and bad price chart reading outcome. Let's keep our finger cross on this buy opportunity call.
Have a nice weekend, folks!
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