Thursday, July 22, 2010

Glove makers slip in early trade

KUALA LUMPUR: Shares of Top Glove and Supermax extended their losses in early trade on Thursday, July 22 in line with the cautious market.

CIMB Retail Research said both stocks showing weaknesses in their share prices.

At 9.45am, Supermax is down eight sen to RM6.27 with only 34,700 shares done while Top Glove shed six sen to RM6.74.

The FBM KLCI is down 2.76 points to 1,338.26. Turnover is 182 million shares valued at RM93.67 million. There are 119 gainers, 185 losers and 160 stocks unchanged.

CIMB Retail Research has a Sell call on Top Glove at RM6.80 after the stocks violated its short term uptrend support on Wednesday following three days of losses.

In its technical outlook, 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 level.

As for Supermax, CIMB Research said the buying momentum on Supermax's uptrend is slowing as shown by its bearish divergence on its MACD as well as its RSI. The hook down on its RSI from its overbought territory is a sell signal on its own, albeit a weak one.

'For now, we see a short term reversal in price is taking place. Sell with the short term target being the support trend line with a potential for a test of its 200-day SMA. A breakout above RM6.60 would suggest that the trend is extending for a while longer,' it said.

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