Wednesday, December 15, 2010

KNM broke above its downtrend line at RM2.20-2.25.

KNM had a downtrend reversal when it broke above the sloping line (SS) at RM2.00-2.05 on November 26. KNM dropped back to test this sloping line (SS) at RM2.00 when it underwent some correction & then rebounded off this line on December 8. Yesterday, KNM surpassed the recent high of RM2.20, which signal the continuation of the short-term uptrend line. See Chart 1 below.


Chart 1: KNMs daily chart as at Dec 15, 10.20am (Source: Quickcharts)

The upside breakout of the recent high also coincided with the upside breakout of the medium-term downtrend line (RR) at RM2.20-2.25 (see Chart 2). With this breakout, KNM is likely to test its next horizontal resistance at RM2.80-2.85.


Chart 1: KNMs weekly chart as at Dec 15, 11.20am (Source: Quickcharts)

Based on the above, KNM could be a good trading BUY.
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3 comments:

  1. stWednesday, December 15, 2010 11:56:00 AM

    Hi Alex, what's your view on Mudajaya both fundamental & TA? Its price has stablized at RM3.9x now. Is this the right time to accumulate for long-term?

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  2. Alex LuWednesday, December 15, 2010 12:15:00 PM

    Hi st

    Mudajaya's latest results is quite good & it's an improvement over last year's results. For QE30/9/2010, it made a net profit of RM46.5 mil on turnover of RM192 mil [compared to last year's net profit & turnover of RM35.3 mil & RM200 mil respectively]. For 9-month ended 30/9/2010, it made a net profit of RM151.4 mil on turnover of RM639 mil [compared to last year's net profit & turnover of RM75.8 mil & RM508 mil respectively].

    Chartwise, it tested its very strong horizontal support at RM3.70-3.80 recently & rebounded. Its next resistance is at RM4.00- an psychological resistance as well as the medium-term downtrend line. If it can surpass this mark, it may go to test the next horizontal resistance at RM4.60-4.70.

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  3. leslieroycarterThursday, December 16, 2010 11:07:00 AM

    Hi Alex:

    KMN has gone up much higher than anticipated though it has exercised by reducing its shares from 4 to 1 . The closing price then is 42 cts , so by right it should be in the region of 1.66 . Presently it has risen to a height of 2.75 which is way beyond market anticipation. Do you think this stock could rise further given the high vol in trade? Thanks

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