Kossan Rubber Industries is eyeing a bullish breakout after testing the resistance level with a white candlestick. The counter has been consolidating sideways below the MYR2.30 resistance. We observed that the 21-day SMA line is moving upwards, showing that the short-term trend is bullish. If the stock breaks past the immediate resistance, we expect follow-through price action to test the next resistance level at MYR2.50, followed by the one at MYR2.70. A fall below the MYR2.10 support level would resume the correction phase.

Source: RHB Securities Research - 18 Nov 2024