Supermax Corporation is set to rebound strongly after bouncing off the support level and breaching above the MYR0.90 mark yesterday, forming a “Bullish Engulfing” pattern that indicates an upward reversal ahead.
RHB Retail Research, in a note today (May 10), said supported by significant trading volume and a “higher high” bullish structure above the 21-day SMA line, buyers are expected to drive the stock towards the MYR1 psychological level, followed by MYR1.07, the YTD high.
However, falling below the MYR0.85 support will negate the bullish setup and lead to the formation of a “lower low” bearish pattern below the 21-day SMA line.
Tune Protect Group is attempting to move past above its sideways consolidation phase of MYR0.43, as it tested that level on higher trading volume yesterday.
If a breakout above that level happens, a “higher high” bullish structure should emerge, and the stock may trend northwards towards its YTD high of MYR0.46, followed by MYR0.50.
However, falling below the MYR0.40 support would result in a “lower low” bearish pattern, and the stock price may decline.
