Supermax closed 6 sen or 2.6% higher at RM2.36 yesterday on high volume as investors began realising the deep value in this rubber gloves sector laggard. The share price has gapped up to stage a reversal from its recent downtrend, settling at above all its Moving Averages while the 50-Day MA has staged a crossover against the longer-term 100-Day MA (Golden Cross), suggesting the positive momentum of the share price. The bullish bias is further evidenced by the positive movement of its MACD signal while strong buying momentum was showcased by Stochastic and RSI indicators, both hooking upward. With the bullish bias on this stock, we are placing a “Trading Buy” call on this stock with a target price of RM3.08 in the long term with a stop-loss at 3 bids below the multi-year support level of RM2.13 at RM2.10.

 

 

Source: Kenanga