Over the last one month, SUPERMX has been undergoing a consolidation phase after reaching a high of RM2.29 since breaking out from a “Flag” chart pattern. We believe the stock may consolidate at current levels around RM2.15 which is a strong support level, but an uptrend may be in the making as the 50-day and 100- day SMAs are trending upwards, while the ‘Dragonfly Doji’ candlestick is signalling a change in direction. Key indicators such as RSI and MACD are flattish, but Stochastics is staging a bullish uptrend from oversold levels. As such, we are recommending a ‘Trading Buy’ on SUPERMX as we see good buying opportunity during the consolidation phase. We anticipate that the share price could look to retest its previous high of RM2.42 in the near-term, does the share price stage a ‘Flag’ breakout on positive catalyst or newsflow for the stock during its upcoming result later today.

Source: Kenanga