Recall that we issued a “Trading Buy” on KNM on 16 April on a strong volume breakout backed by then favourable technical indicators. However, the share price failed to perform according to our expectation and instead been consolidating post breakout. Technical picture has also turned bearish with RSI and Stochastic indicators pointing downwards, suggesting strong selling momentum. All in, we reckon the stock will consolidate further against its -2SD regression line in the near-term. Thus, we decided to cut loss but will continue to monitor the stock for reversal signal.

Source: Kenanga Research - 28 Apr 2015