Has Supermax bottomed? Or are we seeing HOPE yet?
Can we start to hope for further upside in Supermax? I would answer yes if Supermax can find strong support at RM 6.70 and start to break and close above RM 7.50.
I think the right question to ask right now is has Supermax bottomed? From chart perspective wise, I believe Supermax has not bottomed yet and we could likely see further downside pressure if it breaks and closes below RM 6.60. RM 6.60 is a very crucial level now that the bulls must protect. A failure at this level, could see Supermax retest RM 5.80 level again which is also current daily 200 moving average. Therefore short term wise, I am not bullish on Supermax until it breaks and closes above RM 7.50 again.
Further to this, if bulls fail to also protect RM 5.80 level if it is being retested, it could send Supermax downward some more to around RM 4 range as this range is also the 62% to 78% Fibonacci Retracement level according to the march dip and august peak. Therefore now bulls must strongly protect RM 6.70 level and pushes it up further above RM 7.50 or else bears will have control at this territory.
To support further on the argument of Supermax has not reached its bottom yet, we can study it from the Elliot's wave theory of corrective move ABC. ABC talks above the trend reversal. Early to mid of this year we saw a strong uptrend momentum on Supermax. However in August we started to see a trend reversal for Supermax. This trend reversal can be read as ABC. A wave in this scenario will trend down which took place on 7th Aug in sending down its price from RM11.95 to RM5.55, creating a downward pressure RM 6.40. Then B wave took place in driving up the price to RM 10.65 on 20th October. So how far the next C wave can send Supermax down? The answer is gotten by substracting RM 6.40 from RM 10.65 which will give us RM 4.25. With this, we can believe a further downside pressure could send Supermax down to RM4.25.
In all circumstances, there is always hope, lets hope Supermax to quickly breaks and closes above RM 7.50! Cheers and bye for now! Merry X'mas to everyone! God bless!
I think the right question to ask right now is has Supermax bottomed? From chart perspective wise, I believe Supermax has not bottomed yet and we could likely see further downside pressure if it breaks and closes below RM 6.60. RM 6.60 is a very crucial level now that the bulls must protect. A failure at this level, could see Supermax retest RM 5.80 level again which is also current daily 200 moving average. Therefore short term wise, I am not bullish on Supermax until it breaks and closes above RM 7.50 again.
Further to this, if bulls fail to also protect RM 5.80 level if it is being retested, it could send Supermax downward some more to around RM 4 range as this range is also the 62% to 78% Fibonacci Retracement level according to the march dip and august peak. Therefore now bulls must strongly protect RM 6.70 level and pushes it up further above RM 7.50 or else bears will have control at this territory.
To support further on the argument of Supermax has not reached its bottom yet, we can study it from the Elliot's wave theory of corrective move ABC. ABC talks above the trend reversal. Early to mid of this year we saw a strong uptrend momentum on Supermax. However in August we started to see a trend reversal for Supermax. This trend reversal can be read as ABC. A wave in this scenario will trend down which took place on 7th Aug in sending down its price from RM11.95 to RM5.55, creating a downward pressure RM 6.40. Then B wave took place in driving up the price to RM 10.65 on 20th October. So how far the next C wave can send Supermax down? The answer is gotten by substracting RM 6.40 from RM 10.65 which will give us RM 4.25. With this, we can believe a further downside pressure could send Supermax down to RM4.25.
In all circumstances, there is always hope, lets hope Supermax to quickly breaks and closes above RM 7.50! Cheers and bye for now! Merry X'mas to everyone! God bless!
Comment:
Hi everyone, hope everyone is fine and good! We all can clearly see after RM 6.70 was broken, a massive sell off took place. Next level of support in observation now will be RM 5.55 to RM 5.77. At this level, we should see some bounce.