Kossan Rubber Industries Bhd
has been moving in a sideways trajectory for the last two weeks as the share price consolidates following a long rally. Hovering near the 14-day simple moving average (SMA), the share is taking a breather with the slow-stochastic dropping below the 50-point level.
However, the 14-day relative strength index (RSI) remains robust at 61 points while the daily moving average convergence and divergence (MACD) line remains positive despite falling below the signal line. Given the positive trend on the daily price chart, the share is expected to resume rising past the immediate resistance of RM2.10 and to a higher target of RM2.73.
Support for the share is found at RM2 and RM1.80.
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