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.

  • If you like this article, consider starting the Stock Market Course. It is free and jam packed with great information for newbies.
  • Want to have updates on the financial markets? Join my Telegram Channel. Channel.
  • Help support this page and press the Facebook Like button below. Thanks!

Recent Articles

  1. Dow Jumps Higher After Trade War Pause, Will Markets Go Even Higher?

    Dec 03, 18 08:16 AM

    With an agreement to pause the trade war, Dow is about to jump 450 points higher, but will this rally sustain and go even higher? Lets take a look at the charts.

    Read More

  2. Bull Run To Year End In US Market? It All Depends On This...

    Nov 29, 18 07:51 AM

    Yesterday we saw a huge big rally 600 ++ points. The question now is this rally sustainable and will we have a beautiful Christmas in the stock market this year. Here are a few things to look out for…

    Read More

  3. Technical Analysis Of KLCI 29 November 2018

    Nov 29, 18 07:35 AM

    This sideways movement in the KLCI is really giving investors and traders a headache. What we are experiencing now is a volatility contraction which is often followed by volatility expansion.

    Read More

  4. Nasdaq Tries To Bottom But Still Faces Selling Pressure Nov 26 2018

    Nov 26, 18 08:52 AM

    As the techs reach an area of long term support, its going to be a choppy ride as the market decides whether support will hold or the downtrend continues...

    Read More

  5. Stock Market Analysis October 30 2018

    Oct 30, 18 06:35 AM

    As we close out the month of October 2018, what is in store for us? Let us take a look at the charts and see what they might be telling us.

    Read More

New! Comments

Have your say about what you just read! Leave me a comment in the box below.