KUALA LUMPUR (Sept 19): KNM Group Bhd shares rose 5.06% in early trade this morning following a positive technical outlook on the stock.

At 9.21am, KNM rose 2 sen to 41.5 sen for  market capitalisation of RM1.08 billion.

AllianceDBS Research said KNM Group Bhd had on Sept 18 crossed over the 40 sen hurdle to reach an intraday high of 40.5 sen before closing at 39.5 sen (up 1.5 sen or 3.94%).

In its evening edition Sept 18, the research house said KNM continued to trade above 20-day (blue) and 50-day (red) moving average lines.

It said following the up close on Sept 18, the stock is likely to move higher with immediate hurdle at 40 sen.

“A crossover of 40 sen should see further price rise to the next overhead resistance zone, 44 sen – 45 sen.

“The support is pegged at 36 sen. A fall below 36 sen would put pressure on the stock down to the subsequent support at 34 sen,” it said.

AllianceDBS Research said stock volume traded on Sept 18 was 81.7 million shares compared to the 3-month average volume of 90.2 million shares.