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 considerablyin the past 2 weeks as it has traded sideways in a tight range ofRM0.50-RM0.53.  The consolidation mayhave ended yesterday after the stock closed above the RM0.53 resistance level. Thedaily RSI is also in oversold territory as it has printed the lowest figuresince the start of  the  rally in Sept 2011. Thus, a new  up-leg may have started and purchases can bemade above RM0.53 with a stop loss on close below  the psychological RM0.50.  Expect resistanceat the recent highs of RM0.66 and RM0.80, but look for a test of psychologicalRM1.00 if both levels are violated convincingly. The trade may not work outshould it close below RM0.50 and weakness is confirmed on a violation ofRM0.43, which may signal the end of the rally.

KNM's share price may  rally  further after closing the highest in almost a month. There is no doubt that thestock is on a long-term downtrend, as seen from the series of lower highs sinceearly 2008.However, buying strength was seen in the stock and this may lead toat least a short-term rally. It can be seen from the failure of the stock toviolate the 3-month low of RM0.83 despite testing this level twice.  Theshort-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, purchasescan be made above RM0.90 with a  closebelow RM0.90 as  a  stop loss. A more conservative trader may optfor a close below last week's low of RM0.845 as a  stop loss instead. Given thedowntrend,  the price target is thepsychological RM1.00 and RM1.05, both being  Fibonacci levels of theFeb-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  thestock closes below RM0.845, with a close below the  December-low of RM0.83as  the confirmation. This should lead to a continuation of the long termdowntrend.

Source: OSK188