Supermax Corporation may soon scale higher to test the RM9.00 resistance level. With a rising trading volume, we foresee that there could be a technical breakout above the resistance level. If this happens, it will climb towards the short-term target price of RM9.45 followed by RM10.40. In this case, the downside support is marked at RM8.05, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM9.00

Target: RM9.45, RM10.40 (time frame: 2-4 weeks)

Exit: RM8.05

Source: AmInvest Research - 3 Jul 2020