Date: October 22, 2024
Broker: CGS International
Overview
Karex is a Malaysian company known as one of the world’s largest manufacturers of condoms and other latex products. The company supplies to various international markets, including both private label brands and government organizations. Karex also produces lubricants and other sexual wellness products, diversifying its portfolio to strengthen market reach.
Current Stock Performance
- Last Price: RM 0.845
- Entry Price Range: RM 0.865
- Support Levels:
- Resistance Levels:
- Resistance 1: RM 0.895
- Resistance 2: RM 0.96
- Stop Loss: RM 0.775
- Target Prices: RM 0.895, 0.96
Technical Analysis
Karex’s stock has been experiencing a minor pullback, currently trading at RM 0.845, slightly below its entry level. The stock shows stability around the support level of RM 0.775, indicating that it may have found a base.
Technical indicators suggest a potential for recovery if the stock can gain momentum and move past the initial resistance at RM 0.895. Further upside could see the stock reaching RM 0.96, supported by favorable trading patterns and a stable industry outlook. The company’s diversification into various latex and wellness products continues to support its resilience.
Trading Strategy
Investors might consider entering at the current price or on slight pullbacks closer to the RM 0.865 level. With a stop loss set at RM 0.775, the trading strategy allows for risk management while targeting gains. The stock’s resistance levels at RM 0.895 and RM 0.96 provide clear milestones for potential profit-taking.
Analyst Comments
The technical setup for Karex indicates a phase of stabilization, with strong support levels offering a safety net for traders. If the stock breaks through its initial resistance, there could be a gradual recovery, backed by the company’s robust market position in the sexual wellness industry. Karex’s expansion into related product lines further strengthens its growth prospects, suggesting opportunities for medium-term gains.
