Based on the daily chart (1D), the technical indicators are flashing a strongly bullish signal, aligning perfectly with the fundamental story regarding ASP hikes and the Middle East disruptions.

Here is the interpretation of the indicators:

1. Price & Moving Averages (Bullish Breakout)

· Action: The stock is trading at RM 1.230, up +4.24% today. It has broken out of a tight consolidation zone.
· Signal: It has decisively moved above both the MA50 (Green line at 1.045) and is well positioned above the MA200 (Blue line). This is a classic "Golden Cross" confirmation in progress. The price staying above these major moving averages indicates the long-term trend has shifted from bearish/cautious to bullish/confirming recovery.

2. Volume (Massive Confirmation)

· Signal: There is a massive surge in volume (42.804M). This is much higher than the average volume over the previous weeks.
· Meaning: The breakout at 1.230 is legitimate. It is not a "fake-out" move. Institutional players or big funds are aggressively buying in the lead-up to the anticipated earnings boom.

3. RSI (Strong Momentum Without Overheating)

· Level: The RSI 14 is at 63.44.
· Meaning: The stock is gaining very strong momentum. An RSI reading between 50 and 70 indicates a healthy uptrend. It hasn't crossed into overbought territory (above 70) yet, meaning there is still potential for the price to run to RM 1.30 or RM 1.40 before needing a major pullback.

4. MACD (Turning Positive)

· Status: The MACD lines are sitting at 0.030 and 0.029, with the histogram barely visible.
· Meaning: Earlier, the MACD was showing a bearish/signal line crossing down. However, with today's surge, the two lines are converging for a fresh bullish crossover. If the price closes strong at 1.230, expect the MACD to turn fully green in the next session. This confirms that the momentum is shifting back in favor of the bulls.

💡 Overall Technical Conclusion

This chart confirms the "Revaluation Story" is beginning.
The market is clearly anticipating the August QR where the US$26-28 thousand ASP numbers will appear in the P&L statement.

Caution: The trend is your friend, but chasing the exact top of a large candle is risky.

Happy trading everyone

Sharing as I have skin in the game……

KUALA LUMPUR (May 8): New Paradigm Research in a note on Friday said it expects glove makers’ earnings to double in one to two quarters on glove makers' unique opportunity to raise prices above and beyond direct cost impacts.

This is supported by industry-wide price adjustments, US tariffs limiting Chinese imports, and delayed increases in gas costs for producers.

The research house is more optimistic than the market, forecasting 60%–80% higher earnings for glove makers because it believes they can raise selling prices despite higher nitrile costs. However, it also notes that prices and costs remain volatile and assumes a 5% drop in demand. While the market is cautious due to recent data showing glove prices fell in March. However, nitrile material costs have clearly increased.

New Paradigm believes most market forecasts focus on sales volume instead of price increases and have not fully included profit margin improvements. It expects that as earnings improve over the next two quarters, glove company valuations will likely rise as well.

Since the closure of the Strait of Hormuz, the nitrile prices have surged as the closure disrupted naphtha supply flows into Asia. Nitrile, which makes up roughly 40% of glove production costs, is derived from naphtha.

Malaysian glove makers source around 65% of their nitrile requirements from South Korea, which itself relies heavily on Middle Eastern naphtha imports.

New Paradigm estimates nitrile prices have risen about 60% on average since the conflict began. Still, the research house noted that the entire global glove industry, including Chinese competitors, is facing similar cost pressures, too. This allows Malaysian manufacturers to pass higher costs to customers more effectively, it added.

“Demand for medical disposable gloves is non-discretionary in nature,” New Paradigm said, adding that substitution to latex gloves is not viable because of allergy risks and the natural rubber gloves also tend to be less durable and not suitable for all applications.

The sector’s pricing power is also being strengthened by the US’ Section 301 tariffs on Chinese glove imports, which have effectively priced low-margin Chinese gloves out of the US market. Malaysian manufacturers now account for more than 60% of US glove imports by volume, while China’s market share has fallen to below 10% from over 30% previously, the house added.

“The bias for conservatism and the “wait and see” approach present an opportunity — once the earnings delivery trickles in, the upgrades to expectations could spur a more substantive rerating for valuations as well,” New Paradigm added.

It said that since the Covid-19 boom years, analysts have not significantly raised their earnings forecasts in the middle of the year.

The firm estimates that Top Glove Corp Bhd (KL:TOPGLOV) could see net profit almost double sequentially, while Hartalega Holdings Bhd (KL:HARTA) could record around 60% sequential earnings growth.

Shares of major Malaysian glove manufacturers rebounded on Friday morning, with Top Glove, Hartalega and Kossan rising between 6% and 8%. The gains coincided with the market reaction to reports of a hantavirus outbreak in South America.

CSG International Research analyst William Wo said it maintains a cautious view on the sector after noting that the World Health Organization had described the Andes strain as having a fatality rate of about 35%, although human-to-human transmission remains rare. Symptoms include fever, chills and breathing difficulties that may only appear several weeks after infection.

HARTA is delivering a textbook technical breakout, where the charts are telling:

1. The Massive Breakout

· The Action: The stock rocketed +8.13% to RM 1.33. It has violently broken above the consolidation zone (the previous resistance ceiling around 1.20 - 1.25).
· The Meaning: This breakout confirms the stock has left its sideways/digestion phase. Market sentiment has flipped decisively bullish. The re-rating based on the new ASP (~$26-28/k) is accelerating.

2. Technicals are Flashing "Buy" Signals

· Volume (Heavy): The volume bars are massive. This indicates institutional money is piling in, not just retail chasing headlines. This is a high-conviction breakout.
· Golden Cross (MA 50 & MA 200): The MA 50 (1.054) is clearly set to cross above the MA 200 (1.103). This is the single strongest long-term bullish signal in a chart. It indicates the 50-day trend is now stronger than the 200-day trend.
· MACD (Bullish Cross Confirmed): The MACD line has crossed above the signal line (0.041 vs 0.032), and the histogram has flipped to green (positive 0.009). This confirms the momentum is now fully on the side of the buyers.

3. The Only Watch-Out: RSI (Overbought)

· RSI 14 is at 71.05. This is technically overbought (anything above 70 is considered overextended).
· What this means: It does not mean the rally is over. In a strong trend (like this one), stocks can stay overbought for a while. However, it does mean you should not chase the stock right at the very top of a huge green candle (1.33). The price is very sensitive to a quick "profit-taking" pullback.

The stock is at 1.330, sitting roughly mid-range between the recent breakout (1.25) and the recent high watermark (1.375). After a massive 8%+ run-up yesterday, the stock is consolidating sideways. This is a normal and very healthy behavior. It allows the moving averages (MA 50) to "catch up" to the price.