Kossan Rubber Industries may soon test the RM4.19 resistance level. With an RSI level above 60%, a bullish bias may be present above this mark with a target price of RM4.35 followed by RM4.45. Meanwhile, it may continue moving sideways if it fails to cross the RM4.19 mark in the near term. In this case, the immediate support is anticipated at RM4.06, whereby traders may exit on a breach to avoid the risk of a further correction.

Trading Call: Buy upon breakout above RM4.19

Target: RM4.35, RM4.45 (time frame: 3-6 weeks)

Exit: RM4.06

Source: AmInvest Research - 20 Aug 2019