Wednesday, October 19, 2011

CIMB Research has technical sell on KNM

KUALA LUMPUR: CIMB Equities Research has a technical sell on KNM Group at RM1.29 at which it is trading at a price-to-book value of 0.7 times.

It said on Wednesday, Oct 19 that'' despite recent rebound, KNM Group failed to move back above its 50-day SMA. This shows that the stock is still trapped in a downtrend channel.

'Looking at the chart, we believe the bears will continue to dominate as long as prices fail to cut above the resistance trend line (now at RM1.45),' it said.

CIMB Research said prices may try to take on the 50-day SMA level again but sustainability remains a key concern. On the downside, a break below its 30-day SMA would drag prices towards RM1.20 and RM1.12.

'Traders should do well selling into strength, especially near the RM1.37 to RM1.40 levels,' it said.

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