Kossan Rubber Industries is poised for a rebound as it attempted to breach above the MYR1.15 level yesterday – bouncing off the 21-day average line, coupled with stronger trading volume. If it manages to surpass that level, the stock is expected to rebound higher towards the MYR1.25 immdiate resistance, or 1 Nov 2022’s high, followed by the next resistance at MYR1.35, or 27 Jul 2022’s high. Conversely, the counter may reverse its direction if it falls below the MYR1.05 support, forming a “lower low” bearish structure below the average line.

Source: RHB Securities Research - 21 Feb 2023