KHSB’s daily chart
KHSB may trade higher after completing a bottom yesterday.
The stock has been consolidating for the past 2 months, possibly correcting the rally of Sept-Jan. The downward momentum eased considerably
in the past 2 weeks as it has traded sideways in a tight range of
RM0.50-RM0.53. The consolidation may
have ended yesterday after the stock closed above the RM0.53 resistance level. The
daily RSI is also in oversold territory as it has printed the lowest figure
since the start of the rally in Sept 2011. Thus, a new up-leg may have started and purchases can be
made above RM0.53 with a stop loss on close below the
psychological RM0.50. Expect resistance
at the recent highs of RM0.66 and RM0.80, but look for a test of psychological
RM1.00 if both levels are violated convincingly. The trade may not work out
should it close below RM0.50 and weakness is confirmed on a violation of
RM0.43, which may signal the end of the rally.
KNM’s daily chart
KNM’s share price
may rally further
after closing the highest in almost a month. There is no doubt that the
stock is on a long-term downtrend, as seen from the series of lower highs since
early 2008.However, buying strength was seen in the stock and this may lead to
at least a short-term rally. It can be seen from the failure of the stock to
violate the 3-month low of RM0.83 despite
testing this level twice. The
short-term low of RM0.83 is likely confirmed by yesterday’s “Long White”
candle. This was also accompanied by the highest volume in 2 months, which suggests firm buying interest.Thus, purchases
can be made above RM0.90 with a close
below RM0.90 as a stop loss. A more conservative trader may opt
for a close below last week’s low of RM0.845 as
a stop loss instead. Given the
downtrend, the price target is the
psychological RM1.00 and RM1.05, both
being Fibonacci levels of the
Feb-April decline. The next resistance is RM1.15 and a violation of which may signal the end of the downtrend.
The upside bias is nullified if the
stock closes below RM0.845, with a close below
the December-low of RM0.83
as the
confirmation. This should lead to a continuation of the long term
downtrend.
Source: OSK188
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