Top Glove Corp Bhd (SGX: BVA) initial plan was to adopt a wait and see approach after the release of the 14^th September report and the 2 weeks price movement indicate a potential correction to the downside of a possible double three corrective action or an expanding wedge formation. However, recent technical shows that a potential strong bullish impulse is building up:

1. Top Glove has broken out of the pennant formation and the ascending triangle within. Hence, it is a clear signal that the stock is resuming its bullish upside.
2. Since its rejection near $3.00 region on late September, the correction has been mild and prices is still able to find itself supported above $2.55. As such, Top Glove has gained significant momentum for the upside.
3. The target price 1 and 2 are 161.8% and 200.00% extension level of the pennant and it is an attractive target levels should the immediate resistance zone at $3.00-$3.19 is broken.
4. The 22-day moving average is attempting to cross above the 50-day moving average. Successful crossing will cement the short-term upside as it will form a bullish Golden Cross.

*Timeline of the trade is 3 weeks from the date issued.

*The resistance zone remain a clear immediate threat which needed to be cleared to confirm the uptrend. Otherwise, the support zone one in green will be the next best potential support.

CHART LEGENDS

Moving average

Blue dotted line = 50 periods Moving average

Green dotted line = 22 periods Moving average