Selling Down the KPS Gravy TrainEasy come, easy go. The higher you go, the harder the fall. KPS was ramped up and then profit takers came in to sell it down the river from RM1.42 to RM1.09.
The logic is plain and simple. For a trade to take place, there must be a buyer and a seller. As for the buyer, he is either a person who ‘knows’ what is in store for KPS on the medium term or just another ignorant and greedy speculator on the make . It will be hard for the speculator who liquidated out of fear when the price slumped or when the time for payment comes and he has to let go. I believe that was what happened to KPS. Too many speculators have jumped on to the bandwagon!
KPS overshot its runway when it triple jumped from 92 sen to RM 1.12 to RM1.42. The current price of RM1.20 is about right and there was alot of buying support at the RM1.10 - RM1.14 .
All morning, KPS was trying to find its legs. Initially,it seemed as if it was sinking lower and lower with each passing minute. Looking at the trend this morning, it looks like the support level was possibly RM1.10. There was continuous heavy selling of KPS between 9.30 to 10.00 am. Force selling? Can this support price be sustained?
Thank God, the buying support came after 3 pm, and KPS went up to RM1.20 for a 9 sen gain. My reading is: If it can go up slowly from now on, picking 5 sen to 10 sen a day, KPS should go beyond RM 1.50 by the middle of April. Volume was heavy, beyond 70,000 lots.
I believe the buyers today are genuine and they are fundamentalists or know what is in store for KPS in 2007. As such, I will expect them to “lock up” KPS for quite sometime to await the “good news”. This will automatically cause a supply shortage which will then allow KPS to climb to a higher plane on a more sustained basis.
Heartsong
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