SUPERMX surged 14 sen to end at RM2.93 on high volume yesterday, following expectations that the re-emergence of EPF as a substantial shareholder would lend credibility to the stock. As a result of the bullish single-day move, SUPERMX has confirmed an “Ascending Triangle” chart pattern, which offers a strong technical buy signal. The key indicators are also showing a pick up in momentum, hence we expect follow-through buying to carry the share price towards RM3.43 fairly soon. Traders looking to buy into the stock should aim to take profit 3 bids below this level at RM3.40. At the same time, a protective stop-loss should be placed just below the resistance-turned-support at RM 2.79.

 

Source: Kenanga