Thursday, December 29, 2011

OSK Research: KNM share price may trade higher

KUALA LUMPUR (Dec 29): OSK Retail Research said KNM's share price may trade higher after closing higher for three days in a row.

It said on Thursday KNM's share price downtrend that resumed in January continued into December, bucking the trend of the broader market.

'But things may take a turn for the better after posting strong closes in the past three days,' it said.

OSK Research said the 'Bullish Engulfing' candle of last Thursday was confirmed by higher closes in the past two days, completing the formation of at least a short-term low at 83 sen.

'The high volume in the past week also suggests possible accumulation activities. Thus, a rebound from the November-December down-leg has started. Purchase can be made at the current level with a stop loss on close below 83 sen,' it said.

OSK Research said a more aggressive trade may opt for the two-day low of 88 sen as a stop loss.

Given the downtrend, the rebound is expected to regain no more than 62% of the decline. A strong move could see the covering of the gap of Nov 23 of RM1.22. The research house said the resistance was also expected at RM1.12, the gap of Nov 24, where the 50-day MAV will be at in the next few days.

OSK Research said a close below 83 sen should see the continuation of the downtrend, with the next support at the psychological 75 sen.

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