KUALA LUMPUR: CIMB Equities Research has a technical Buy on KNM GROUP BHD [] at RM1.90 at which it is trading at a price to book value of 1.0 times.
The research house said on Wednesday, July 27t that as opposed to its initial expectation of one more downleg, KNM surprised it on the upside. Prices fell only marginally to a low of RM1.74 before the bulls made a big comeback.
'Yesterday, prices even bounced above the 30-day SMA, which is near term positive. Next resistance levels are RM2.05 and RM2.18,' it said.
CIMB Research said the bullish divergence on the MACD indicator shows that selling pressure is tapering off. RSI too has hooked upward. It appears that the bulls are flexing its muscle.
'Prices may try to fill the RM1.84-1.78 breakaway today but any pullback is an opportunity to accumulate. Always put a stop at below RM1.74 level,' it said.
The research house said on Wednesday, July 27t that as opposed to its initial expectation of one more downleg, KNM surprised it on the upside. Prices fell only marginally to a low of RM1.74 before the bulls made a big comeback.
'Yesterday, prices even bounced above the 30-day SMA, which is near term positive. Next resistance levels are RM2.05 and RM2.18,' it said.
CIMB Research said the bullish divergence on the MACD indicator shows that selling pressure is tapering off. RSI too has hooked upward. It appears that the bulls are flexing its muscle.
'Prices may try to fill the RM1.84-1.78 breakaway today but any pullback is an opportunity to accumulate. Always put a stop at below RM1.74 level,' it said.
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