Recall that on 5th of Feb, we highlighted KNM (at RM0.63) when its share price started to trace out a major trend reversal pattern (from bearish to bullish). Since then, the share price had gained by an impressive 35% to RM0.85 within two weeks. We reckon that it's time for traders to adopt a “Take Profit” stance now, as the technical picture suggests that profit-taking may kick in soon. Readings from the MACD and Stochastic indicators are also showing that the stock is currently in heavily overbought zones. Thus, an imminent pullback is expected over the nearterm before the resumption of uptrend movement. Immediate floor support is now pegged at RM0.745 (S1). Should the support be violated, expect further pullback towards RM0.68 (S2) where bargain hunting opportunities would likely emerge.

 

Source: Kenanga