As glove makers are making a comeback nearing the tail-end of 2022, we are seeing another stock in upward momentum – Yew Lee Pacific (KLSE:YEWLEE, 0248).

Followed by YEWLEE’s announcement on warrant issuance, investors are flocking towards the industrial brush maker. As for today, we are seeing a divergence between glove maker and YEWLEE on today.

In fundamental standpoint, China is moving towards reopening of economy, fear of skyrocketing infections of Covid-19 in China emerges, and attention for investors had once again shifted back to the largest glove makers in the world – in which Malaysia commands approximately 60% of the world’s rubber glove market share.

The anticipation towards higher Covid-19 in China should see more consumption locally, and this should diminish the competition towards Malaysia glove makers, and this is expected to be positive for YEWLEE, which have over 70% of their revenue coming from the rubber glove industry.

Technically speaking, we are still seeing YEWLEE standing strong at the RM0.370 support level.

However closer to 12:30 PM, we are seeing higher volume and stronger momentum trending towards the upside.

Should YEWLEE test above RM0.370 after noon-break session, we should see a strong rebound towards the RM0.400 (R1) and RM0.425 (R2) levels.