KNM & IOI Corp

Last month I mention that KNM might be on the verge of breaking down. As it turns out, it bounced back higher but yet again, it is testing its critical line. The way I see it, it is still the same Technical Reading with IOI Corp, which was the same comparison last month. For now, it is easy to forecast KNM. If KNM close below RM1.70, a level it has not seen since April this year, it seems set to see a drastic fall. Whether it would be the same drastic drop like IOI Corp, I do not know. What I do know is that if KNM drops below RM1.70, I DO NOT WANT to hold the stock, and I DO NOT WANT to buy the stock.

At the time of writing, KNM is trading below RM1.70, but whether it can close below RM1.70 and remain below RM1.70, we shall see. Interestingly, we saw how Commerz reacted yesterday and today. I personally do not think the 2nd Quarter results as disastrous, but as always, it is how market reacts to the news. Thus, the trigger point for KNM could be anything. Below expectation results, Borsig deal delayed or not going through, etc. I do not know. I am not bothered about that. What I do know is that the price action says that there is a strong possibility that KNM might be seeing a drastic fall. Whether I am right or not, we shall know within 1 month time.