Chart: KNM's daily chart as at May 27, 2011 (Source: Quickchart)
Monday, May 30, 2011
KNM- hanging onto its uptrend line... for now
On Friday, KNM reported its results for QE31/3/2011 which wasn't exciting nor disappointing. However, the share price plummeted 15% from RM2.53 to RM2.15! In the process, KNM broke through two horizontal lines (RM2.50 & RM2.20) and tested its medium-term uptrend at RM2.05-2.07 as well as the horizontal line at RM2.12 before rebounding to close at RM2.15. The volume for Friday was huge as 103 million shares were traded. This could be a sign that some big sellers have decided to exit this stock. Have they fully sold off their position? We don't know. I expect the share to remain weak for the next few days, possibly re-testing the uptrend line support again. If this support is not violated over the next few days, you may slowly buy into this stock for a rebound play.
Chart: KNM's daily chart as at May 27, 2011 (Source: Quickchart)
Chart: KNM's daily chart as at May 27, 2011 (Source: Quickchart)
hi bro,
ReplyDelete2.15 was breakdown.
shall we wait to buy somewhere around 1.90?
by the way, knm-cw now stood at expensive --> very high premium. shall we exclude the cw in the trading?
Hi,
ReplyDeleteBig saler also mean big buyer. I think KNM likely to move sideways for short term but for long term KNM may move up due to order in hand still big.
Hi Ivan
ReplyDeleteIt is hard to be too precise. It may go to RM2.00 or even to RM1.90. The sharp sell-off was on heavy volume & there maybe more selling to come.
On the CWs of KNM, they are all overvalued, with premium above 30%. You should just ignore them.
Hi Durian Edge
ReplyDelete"Big saler also mean big buyer". You are partly right. Look at the direction of the movement. That will give you an indication who is in control.