Rubberex Corporation is set to rebound from the recent pullback as it bounced off the 21-day average line while exceeding the MYR0.735 resistance level – on the back of stronger volume. If it manages to sustain above that threshold, an uptrend resumption may result in the stock hitting the MYR0.80 mark, followed by the MYR0.845 next resistance, ie Nov 2021’s high. However, the stock may reverse to a downtrend if it falls below the MYR0.67 support, forming a “lower low” bearish pattern – beneath the average line.

Source: RHB Securities Research - 24 May 2022