KNM – RM0.51 STRONG SELL (TECHNICAL)
(Stock Code: 7164)
above: KNM daily chart (click to enlarge)
KNM Group Berhad (KNM) designs, manufactures, and maintains process equipment, pressure vessels, heat exchangers, skid mounted assemblies, process pipe systems, storage tanks, specialized structural assemblies and module assemblies for the oil, gas and petrochemical industries.
Recommendation
KNM peaked at its Wave 4 high of RM0.85 in February 2010 (with very bearish signals) and the daily SMA “Dead Cross” as well as the closing prices are below the 19 and 50 day SMA line, support our view of further declines in the mid-term. We believe the stock will continue its plunge to the support areas of RM0.32 and RM0.45. AVOID KNM TOTALLY as an investment stock.
STRONG SELL (TECHNICAL) for KNM, with its significantly weaker support and target areas shown above.
by: Maybank Investent Bank
