In the recent weeks, prices on the Malaysian rubber market had started to firm up due to an increase in global demand for rubber. The outlook for rubber products related stocks such as Kossan appears to be rosy. The uptrend for Kossan is still intact as the price is supported by its 20- and 50-day moving averages. In addition the MACD trend indicator is inching upwards and remains above its signal line which suggests that further upside potential is still on the cards. However the RSI oscillator has breached above the 70% overbought level, thus a possible near-term correction cannot be ruled out. The prior resistance now turned support at RM4.19 should contain any dips. On the upside, watch out for the recent September 2009 high of RM4.40.  A break above it may open up scope to test the next technical resistance at RM4.80 and above sees RM5.05 next. Key support to look out for will be at RM4.00 and failure to hold here may negate the bullish tone to see a correction towards the next classical support at RM3.50 which also corresponds closely to the 38.2% Fibonacci retracement from its October 2008 low to its recent September 2009 high.