Among the 4 major gameplays in the stock market; the toughest one is no. 4.
1. IPO play 2. Fundamentals & Dividends play 3. M&A play 4. Turnaround/bottom-picking play
SUPERMX and NOL are 2 very tough stocks (no.4), where retail players long or short also get killed by the major cheng kay at current price level.
Most Glove makers made substantial gain in the last few sessions. Supermax is a lagger. However it last closed with a long spinning tail suggested strong buying pressure.
Closing price of glove makers as as 4/5/2015:
I am looking for reasons to long SUPERMAX: 1) Bullish CCI(26) oversold and reversing. 2) Medium term bullish MA crossover; 25dMA crossed above 50dMA. 3) Williams %R(14): Bullish Williams %R at -84 (Over bought and reversing). 4) 5d Stochastic hooking up. 5) ADX and ADXR well below 16 sugguest no trend.
Does Fibonacci Retracement works for the trend which SUPERMAX is in now? I am thinking of "buy the Dip and Sell the Rally" using it with the 20dMA as a guide.
Trading plan is to buy above RM 2.02(support turn resistance) and cut lost at RM 1.97.
Most glove makers stocks in Malaysia have performed exceptionally well, except SUPERMX. The CEO's insider trading may have created uncertainty and a negative impact on SUPERMX's current share price. Compared with SamuderaShipping and SingShipping - the bullish performance of these 2 shipping stocks among others in the current -ve shipping industry is due to its own strength. These 2 are considered exception or special situation stocks.