Top Glove (SGX: BVA) correction and rebound has played out exactly based on our report on 31^st 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