Recently, the rubber glove industry hit a speed bum due to the rising fuel cost as well as the falling average selling price of natural rubber and nitride gloves. Yesterday, SUPERMX dipped 5.0 sen (-2.12%) to settle at RM2.31. From a technical perspective, SUPERMX is currently trading near its multi-year support level of RM2.25. Key indicators are suggesting near-term cautiousness and the selling pressure is heavy. Two scenarios could be derived from the current technical chart: (i) potential rebound play at its crucial support level of RM2.25; (ii) Potential breakdown from the support level should see the share dip further towards RM2.00 next. We are technically biased towards the latter scenario given the lack of positive leads at this juncture.

 

Source: Kenanga