Since the beginning of year 2019, KNM showed a strong accumulation. On 14th Feb, huge volume with green candle indicated a possible accumulation by the composite man. However, the price dropped to RM0.09 cents on 28th February implied the stock was not prepared to rally. On 13th March, huge volume rushed in to buy the stock and the price showed strength by trading above RM0.115. On 3rd April, the stock penetrated RM0.135 resistance line with high volume. After the consolidation phase, the stock rallied again on 25th April to RM0.215. The mini bear market in May forced the stock to trade below RM0.215 and eventually consolidate between RM0.18 and RM0.20. The flat narrowed trading range in June implied there were lack of supply in the market.
The stock rallied to RM0.255 on 28th June and RM0.315 on 5th July; 66 percent gains in 6 days. Weekly chart shows it was the highest volume in a week for the stock since IPO. I don’t recommend retailer to trade this stock. Normally supply is on the way after the huge rally in a short period of time. Trade safely. Remember you have many stocks in KLSE, don’t rush in to buy a stock that shows only one quarter profit. (Click here for full picture)
http://www.geraldkohstockcharts.com/2019/07/07/knm-rally-66-in-6-days/?utm_source=rss&utm_medium=rss&utm_campaign=knm-rally-66-in-6-days
