Technical Pulse: Top Glove Corp Bhd March 11, 2021 470

 

Top Glove (SGX: BVA) has been on a long correction since September 2020 last year when prices were at their highest at $3.17. Initial wave analysis pointed out to a double three corrective wave. A lack of momentum indicating the ongoing last leg of wave ((z)) of the triple corrective wave:

 

  1. The upside rebound last Wednesday after a bullish engulfing candle was not convincing as the successive candles were weak, hence, the formation of a bearish flag.
  2. Bearish pin bar was spotted on Wednesday after it rejected key resistance zone at $1.73-$1.82.
  3. Prices on a downtrend as prices still falling within the trend line.
  4. Prices are seen trending below all major moving averages after the death cross was formed on 18th February 2021.
  5. The support zone confluence with 161.8% extension level of wave ((w)). Making it an attractive area of value for a potential rebound.

 

*Timeline of the trade is 4 weeks from the date issued.

 

CHART LEGENDS

 

Moving Average (Exponential)

Red dotted line = 200 Periods Moving Average

Blue dotted line = 50 Periods Moving Average

Green Line B= 26 periods Moving Average

 

 

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About the author

Profile photo of Chua Wei Ren

Chua Wei Ren
Technical Analyst
Phillip Securities Research Pte Ltd

Wei Ren specialises in Technical Analysis and has 11 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory. He believes that history plays an important role in how the market is reflected in the future.

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