Technical Pulse: Top Glove Corporation Bhd September 14, 2020 311

Top Glove (SGX: BVA) correction and rebound has played out exactly based on our report on 31st August. Based on the recent technicals, we believe that prices will continue to edge higher:

  1. The regular flat corrective ABC waves has been completed when prices rebounded from 127.2% of wave AB.
  2. Candlestick price action indicate a strong bullish engulfing candle rebounding above 127.2% extension of wave AB and it managed to close above the support level at $2.26
  3. Prices is trending above the 200-day moving average and prices is poised to break above the 50-day moving average.

 

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

*Despite a strong potential for the upside. Should price fails to clear above $3.10 strongly, there is a possible continuation of corrective action which will continue into a double or triple three corrective wave.  

 

CHART LEGENDS

Moving average

Red dotted line = 200 periods Moving average

Blue dotted line = 50 periods Moving average

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CP Chuan
CP Chuan

Hi Mr. Chua, today Topglove drop 12%. It fails to clear 3.10 (yesterday closed at 3.00, quite near 3.10). So, as you indicated, “there is a possible continuation of corrective action which will continue into a double or triple three corrective wave.” Or not yet, because it hasn’t yet pullback to 2.41 (recommended buy limit) after you published the above?
Thank you for your good analysis!

CP Chuan
CP Chuan

Excellent prediction on 31-Aug report! Spot on! Thank you very much!

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 9 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory and Supply & Demand strategies as he believes that history plays an important role in how the market is reflected in the future.

He graduated with a Bachelor of Economics and Finance from University of Murdoch.

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