Kossan Rubber Industries is set to resume its uptrend after rebounding strongly above the MYR1.32 previous resistance on Tuesday with significant trading volume and sustaining above it until yesterday.
RHB Retail Research said today (May 12) the bullish bias above that level is expected to uplift the stock towards reclaiming the recent high of the MYR1.44 resistance, followed by MYR1.58, the highest level since 9 Jun 2022.
However, if the stock falls below the MYR1.21 support, the bullish setup will be negated and a “lower low” bearish pattern will form below the 21-day SMA line.
Jaya Tiasa Holdings is also expected to rebound from its recent pullback after it breached the immediate resistance of MYR0.695 on stronger trading volume yesterday.
The bullish “Marubozu” candlestick suggests that the stock is likely to trend higher towards the MYR0.74 recent high, followed by the MYR0.83 next resistance – its highest since 30 May 2022.
However, if the stock falls below the MYR0.66 support, it could signal a downtrend, supported by the “lower low” bearish pattern, below the short-term moving average line.
