Thursday, 14 March 2013
Highlights / Stock Picks of the Day - Kossan Rubber Industries ("KOSSAN") – Not Rated
KOSSAN's overall uptrend extends as far back as September 2012. During that time, the share price rallied 58 sen from RM2.92 to the RM3.50 intraday high achieved in mid-January. The rally was perhaps overdone, and the share price subsequently entered into a 2-month consolidation period. On last Tuesday, the share price broke out of the resistance level at RM3.32. KOSSAN extended its gains yesterday to finish
at RM3.49 amid high volume. The share price has now come close to the crucial RM3.50 resistance, and we reckon that some degree of profit taking may be present at this level. Nevertheless, should this level be
taken out in the near- term, we may then expect further gains towards the 123.6% Fibonacci Targeted Projection level at RM3.64.