Thursday, September 8, 2011

CIMB Research has technical buy on KNM

KUALA LUMPUR: CIMB Equities Research has a technical buy on KNM GROUP BHD [] at RM1.38 at which it is trading at a price-to-book value of 0.7 times.

It said on Thursday, Sept 8 the stock has fallen sharply since hitting a high of RM3.28 in January.

'Prices have fallen to its lower end of its downtrend channel and we think that a bounce could be taking place soon,' it said.

CIMB Research said the bullish divergence on both its MACD and RSI suggests that selling pressure could be easing a tad. This would likely 'allow' the bulls to temporarily lift prices of its lows.

The research house said as the major trend is still down, only aggressive traders should take on this punt but with a tight stop loss below the recent low of RM1.32. This bounce could lift prices towards the moving averages at RM1.58-1.68. The previous swing high at RM1.55 could also attract prices towards it.

No comments:

Post a Comment