Technical Analysis Of Supermax

Supermax is a rather nice name for a stock. If you use your mobile phone to type this word it might come out as superman. Anyway I digress. In this article we will use technical analysis to analyze what the price of Supermax is doing and to see what it is telling us.

Technical Analysis Of Supermax 2 April 2018 Monday

I will try my best to give you a big picture, small picture and bird's eye view of the technical situation with regard to Supermax. What to do will ultimately be in your own hands. 

We shall begin with a daily chart analysis of the stock.

The chart above shows the daily chart of Supermax. At this moment, the picture that it paints is not very rosy. Some people might see a head and shoulders top in this stock. It has also slashed below the 50 MA which is usually not a very encouraging sign.

There is support at the 2.40 area and hopefully the support holds. If not, the stock might drop all the way to 2.00 if we use the head and shoulders top pattern.

The 60 min chart currently tells us that it is in a downtrend in the 60 min. With it below the 60 min 20 MA and 50 MA, this is not a very healthy sign and usually I do not want to touch this kind of stock unless it goes back above the MAs.

In the past, the stock has also shown us or warn us of a correction. You can see how the stock formed a double top and also broke below a 60 min uptrend line. The breaking of the trendline started the correction.

The chart above is the weekly chart of Supermax.

Well, the huge resistance and congestion area back in 2016 halted the stock's rise. Those resistance areas need to be absorbed which is why the stock collapsed right after forming a topping tail in the weekly chart.

There is a long term support below which I have drawn and hopefully it might help to support the stock. I have also drawn an uptrend line. Perhaps the correction may stop there. But I wont be in a hurry to play this stock unless the 60 min chart gives me a buy signal.

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