KUALA LUMPUR (Oct 9): AllianceDBS Research said the immediate hurdle for KNM Group Bhd was at 58 sen and that KNM had on Oct 8 traded higher to 57.5 sen before closing at the day’s low at 53 sen (down 2 sen or 3.60%).

In its evening edition yesterday, the research house said KNM continued to trade above the 20-day and 50-day moving average lines in the last 2 days.

“Following the weak down close on Oct 8, the stock is likely to test lower with immediate support at 53 sen.

“A fall below 53 sen would put pressure on the stock down to the subsequent support zone, 50 sen – 51 sen.

“The hurdle is at 58 sen. A crossover of 58 sen should see further price rise to the next overhead resistance zone, 60 sen – 62.5 sen” it said.

AllianceDBS Research said stock volume traded on Oct 8 was 146.0 million shares compared to the 3-month average volume of 25.9 million shares.

The research house said indicators wise, the MACD was above the 9-day moving average line with the buy signal remains intact.

It said the relative strength index indicated that the stock was currently in the neutral zone.