Chart : KNM daily chart as of Sep 15 2014 (source: ChartNexus)
KNM's share price has soared from around 40 sen to peak around RM 1.14 for the past one year backed by the improved financial performance of the company. But the uptrend may be come to an end. The counter fell by 5.5 sen or 5.79% with heavy volume to closed at 89.5 sen on Monday. The fall caused the share price to broke its uptrend line as well as its immediate horizontal support line at 91.5 sen.
The timing of the decline of the share price is rather interesting. The share price peaked and started decline somewhere around early August which is when the company made an announcement regarding material contract that involved its subsidiary regarding the Pengerang Integrated Complex Project. The details of the announcement is here :
The supposed good news not only didn't pushed the counter higher instead the share price started decline after that. The potential contract value for KNM for this RAPID job is estimated to be around USD 300 Million. The latest 'relatively' healthy quarter earning announced on Aug 27 also can't stop the share price from further declined.
The selling could be due to temporary profit taking since the stock has more than doubled in 1 year time but the bearish breakout is just something that the investors can't ignore. It could be just a false signal but if the share price do not stabilize or rebound in the next few days then it could be the end of its run for the last 1 year.
No comments:
Post a Comment