Malaysia glove sector: Distribution or accumulation? [Video]

Ming Jong Tey Independent Analyst

In year 2020 the performance of the stock price in the glove sector in Malaysia has grown multifold due to the COVID-19 where the demand spike to historical high. The earnings of the top 4 glove companies like TopGlov (Top Glove Corporation Bhd), which is also World’s largest glove maker, Supermx (SuperMax Corporation Bhd), Harta (Hartalega Holdings Bhd), Kossan (Kossan Rubber Industries Bhd) grow at 4–30 times year on year basis on the latest quarter.

The performance of the stock price for these 4 glove stocks exploded in May 2020 with up to 10 times at the peak in Aug 2020. Despite the strong fundamental support, let’s take a look at the price structure together with the supply and demand for Topglov, Supermx, Harta and Kossan in the video below to find out if they are in accumulation or distribution phase:

Timestamps

1:25 TopGlov (Top Glove Corporation Bhd).
9:48 Supermx (SuperMax Corporation Bhd).
13:10 Harta (Hartalega Holdings Bhd).
15:40 Kossan (Kossan Rubber Industries Bhd).

Is the Malaysia glove sector in a Re-accumulation or distribution phase? It appears to be distributions based on the price action and the volume spread analysis.

Author

Ming Jong Tey

Independent Analyst

Ming Jong Tey has been trading since 2008. He started his learning journey from technical analysis (indicators, Fibonacci, etc...) to value investing. Throughout his journey, he develops an interest in price action with chart pattern trading.

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