Support Line - BFOOD, SUPERMX, ULICORP

A PROLONGED correction process pulled Berjaya Food shares to a low of RM1.65, the worst level since July 2014. Apparently, the single-digit reading on the stochastic and an oversold condition of the 14-day relative strength index offer investors hope of a relief recovery in the immediate term. However, the upside potential is likely to be capped as other indicators are bearish. Fairly strong support is seen at the RM1.50-RM1.60 area while a relatively heavy resistance can be expected at the RM1.90-RM2 band.

SUPERMAX Corp dropped to a low of RM2.13 during intra-day session on Tuesday before pausing in the wake of a fresh bout of bargain-hunting interest. Based on the daily chart, the prevailing trend is bearish and it will remain in correction mode as long as the declining short-term 14-day simple moving average (SMA) of RM2.36 and the 21-day SMA of RM2.45 continue to pressure prices. Support is pegged at the RM1.90-RM1.93 range, of which a crack of this concrete floor will probably pull the shares down to the RM1.58-level.