Naked Chart Trading: SUPERLN 1 Jul 2024

Rubber products manufacturer SUPERLN said its net profit jumped more than threefold for the fourth quarter that ended April 30, 2024 (4QFY2024), thanks to higher gross profit amid increased demand for its products and lower effective group taxation.

Net profit surged to RM2.05 million from RM608,000, as revenue climbed 26.4% to RM30.9 million from RM24.43 million a year earlier due to higher sales volume. The increase in profitability is also attributable to lower material costs and favourable exchange rate movements.

So what cause the sharp fall today? If I compare its quarter result by QoQ, net profit is actually nearly 50% lower than the last quarter, which can be a potential signal that the strong momentum of company financial performance may come to an end.

Study what caused the lower profit on last quarter (higher revenue compare to last quater but net profit significantly lower) and continue to watch out for next quarter result. Price performance wise, the price hit above RM1.40 level, which is close to 70% YTD gains, so a short term overbought correction will be reasonable too at this phase.

Long term trend: Testing rebound after a major correction from year 2017 to pandemic times

Short term trend: Testing rebound with potential overbought correction

Fibo Analysis (2017 high to 2020 low): Price failed to stay above 50% and retraced, may retest 23.6% at around RM0.850

Resistance: RM1.20 (break above to test close gap at around RM1.30), RM1.35, RM1.45

Support: RM1, RM0.870, RM0.720

For investors who aim to buy during this correction may target RM1 or RM0.85-RM0.900 level

The current trend do not emphasize a bull trend, so I wil lcontinue to watch out for any potential bullish wave pattern.

Disclaimer
This content is for reference only and does not constitute any investment advice, and past performance is not indicative of future performance. Returns will vary, and all investments carry risks, including loss of principal. Please make your own investment decisions.