KUALA LUMPUR (Jan 27): CIMB Equities Research has a technical buy on KNM GROUP BHD [] at RM1.10 at which it is trading at a price-to-book value of 0.6 times.
It said on Friday that KNM rallied strongly on Thursday on high volume after forming a base above its 30-day SMA for almost the whole of January.
“We believe that yesterday’s run is the beginning of a stronger rebound,” it said.
CIMB Research said that the MACD signal line has staged a positive crossover while RSI is also rising.
“The positive technical readings reinforce our short term bullish stance,” it said.
The research house said aggressive traders should buy now with a stop placed below 97.5 sen. This run has the potential to take prices up to RM1.35 and even RM1.50-RM1.55 as there is no strong resistance in sight.
It said on Friday that KNM rallied strongly on Thursday on high volume after forming a base above its 30-day SMA for almost the whole of January.
“We believe that yesterday’s run is the beginning of a stronger rebound,” it said.
CIMB Research said that the MACD signal line has staged a positive crossover while RSI is also rising.
“The positive technical readings reinforce our short term bullish stance,” it said.
The research house said aggressive traders should buy now with a stop placed below 97.5 sen. This run has the potential to take prices up to RM1.35 and even RM1.50-RM1.55 as there is no strong resistance in sight.
