Supermax underwent a strong uptrend reversal as it breached the immediate resistance and went past the 21-day SMA line on surging volume. With the formation of a “higher high” and “higher low” bullish pattern, a bullish bias emerged above the MYR3.38 resistance-turned-support level. If the stock remains above the breakout level, the bullish momentum may propel it towards the next hurdle of MYR3.76, followed by the MYR4.00 psychological barrier. Meanwhile, falling below the MYR3.26 support level (below 21-day SMA line) would cancel this expectation.

Source: RHB Securities Research - 16 Jul 2021