Renewed buying interest emerges in Supermax, says AllianceDBS Research

Renewed buying interest emerges in Supermax, says AllianceDBS Research
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KUALA LUMPUR (Dec 16): AllianceDBS Research said renewed buying interest had emerged in Supermax Corporation Bhd and that Supermax had on Dec 15 crossed over the RM2.90 hurdle to reach a high of RM2.95 before closing off the day’s high at RM2.91 (up 15 sen or 5.43%).

In its evening edition yesterday, the research house said Supermax continued to trade above the 20-day and 50-day moving average lines.

“Following the up close on Dec 15, the stock is likely to move higher again with immediate hurdle at RM3.00.

“A crossover of RM3.00 should see further price rise to the next overhead resistance zone, RM3.05 – RM3.10.

“The support is pegged at RM2.90. A fall below RM2.90 would put pressure on the stock down to the subsequent support zone, RM2.70 – RM2.76,” it said.

AllianceDBS Research said stock volume traded on Dec 15 was 14.0 million shares compared to the 3-month average volume of 5.63 million shares.

The research house said that indicators wise, the MACD was above the 9-day moving average line with the buy signal remains intact.

It said the relative strength index indicated that the stock was currently in the overbought zone.