Supermax to test overhead resistance

FOLLOWING the sharp technical rebound on Wall Street on Tuesday, share prices on the regional stock markets including Bursa Malaysia rebounded in tandem yesterday.

The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) rebounded to its day high of 1,495.65. Advancing counters overwhelmed declining counters by 590 to 292.

The FBM KLCI rebounded from its day low of 1,472.14 to a day high of 1,495.65 yesterday. It closed at 1,480.52, recording a day-on-day gain of 8.38 points, or 0.57 per cent.

Supermax Corp Bhd's price trend moved higher to close at RM3.32, giving a day-on-day gain of 6 sen, or 1.84 per cent.

Chartwise, Supermax's daily price trend fell from its day high of RM3.88 on July 8 to its day low of RM3.23 on Tuesday, posting a total loss of 65 sen, or 16.75 per cent.

Its 60-minute price fell through its immediate downside support (B1:B2) yesterday and continued to stay below it.

Its 60-minute fast MACD (moving average convergence divergence) stayed above its daily slow MACD yesterday. Both its 60-minute fast and slow MACDs continued to stay below their respective neutral reference lines.

Supermax's 60-minute price trend is likely to stage a follow-through rebound towards its overhead resistance (RM3.33 to RM3.45 levels).