KNM – RM0.66 STRONG SELL (TECHNICAL)
(Stock Code: 7164) (Bloomberg Code: KNMG MK Equity)
above: 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 bearish signals) and the daily SMA dead cross as well as the closing prices are below the 19 and 50 day SMA line, supporting our view of a potential turn in trend in the mid-term. We believe the stock may soon move into a downward correction phase, to the support areas of RM0.43 and RM 0.64. STRONG SELL (TECHNICAL) on rallies for KNM, with its weaker support and target areas above.
source: Maybank Investment Bank
