Supermax Corporation is poised to test the RM9.84 resistance level. With its RSI indicator pointing upwards, coupled with higher trading volume, we think that there could be a technical breakout towards the short-term target price of RM10.84 followed by RM11.34. In this case, the downside support is marked at RM8.84, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM9.84

Target: RM10.84, RM11.34 (time frame: 2-4 weeks)

Exit: RM8.84

Source: AmInvest Research - 6 Oct 2020