On the daily chart, TOP GLOVE CORPORATION BHD (TOPGLOV) is currently demonstrating strong bullish momentum, trading at 1.20. This price level significantly exceeds several key moving averages, indicating a robust upward trend. The stock price is well above the 200 SMA (0.844), 62 SMA (0.86), and 21 SMA (0.929), confirming the persistence of bullish sentiment in the market. The Relative Strength Index (RSI) stands at 78.39, signaling that the stock is in overbought territory. Despite the continued presence of bullish implications, profit-taking may likely occur in the near term. The MACD is also in bullish territory, with a positive value of 0.083, reinforcing the positive outlook as it remains above its signal line. However, we anticipate that the current trend favors a pullback bias, with a potential breakout below the support level of 1.11 indicating further weakening buy momentum, with the subsequent support level to monitor at 0.945. On the flip side, a failure to sustain levels below 1.11 might signal a potential shift towards a bullish trend, potentially prompting recovery movements. In such a scenario, the next resistance level to observe would be at 1.31. Our research house recommends a HOLD call on TOPGLOV, with a target price of RM 0.86.

Source: BIMB Securities Research - 27 May 2024