KUB Malaysia Bhd (stock code: 6874) surged in yesterday’s trade to test the uppermost 100-day simple moving average (SMA).

A strong buying lead triggered the advance, leading to a breakout of the consolidation channel.

As is the case following such dramatic price surges, the question remains if the rally is sustainable or if the profit-taking will end the uptrend.

Looking at the daily price chart, the stock is touting a brearish outlook. Owing to its sharp fall from a year’s high of 53 sen in January, the share price retreated below the long-term SMAs, which became obstacles to recovery.

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