Technical Breakout: Top Glove Corporation Berhad (7113)According to the chart, TOPGLOV had a resistance (R1) at 6.10 and a support (S1) at 4.70 before it completed a one year double top pattern on 28 Feb 2019. The completion of a double top signals the price is no longer rallying, and that lower prices are potentially forthcoming. The share broke below the support (S1) at 4.70 and closed at 4.54 with a volume of 16.53mil. Hence, the new support turned resistance is now at 4.70. The downside bias continues until the share trades above the 4.70 level.
On the other hand, TOPGLOV also completed one shorter term chart pattern called bearish flag. A bearish flag pattern is constructed by a descending trend or bearish trend, followed by a pause in the trend line or consolidation zone. The bearish flag pattern comes after a strong move downwards. The stronger the move, the bigger the profit potential is. Based on this bearish, the share has an immediate price target (T1) of 4.02.
