SUPERMX’s share price performance had been relatively muted in contrast to this month’s broad market rally. However, we noticed that the stock price is now narrowing within the converging trendlines and is fast approaching the apex of the triangle. As the key indicators, such as the 14-day Stochastic, have just emerged from oversold  levels, we have a stronger conviction on an upside direction breakout from here. We believe that a decisive upside breakout would trigger an immediate buy signal to investors, and should this be the case, the share price could potentially surge higher towards the RM2.23 resistance level, and RM2.38 further up. We suggest that traders watch for a breakout as well as a pick-up in trading volume to confirm this strategy. Once triggered, a stop-loss of RM1.94 should be placed. WATCH FOR BREAKOUT.

 

Source: Kenanga