Market chatter that KNM’s earnings may be at a turning point has sent the share price from a low of 40.5 sen just two months earlier to yesterday’s closing price of 63 sen (up 1.5 sen for the day). The technical picture is also beginning to reflect the more positive sentiment towards the stock, with the major SMA lines recently completing their “Golden Crossovers”. As for the chart patterns, a “Saucer Bottom” is also taking shape, which is indicative that a major change in trend (from bearish to bullish) may be on the cards. Should follow-through momentum continue from here, we reckon that KNM could make its way towards 82.5 sen next (representing the “Saucer Bottom” measurement objective). Meanwhile, immediate support can be found at 60 sen where traders are expected to buy on dips.

 

Source: Kenanga