Frontken Corporation is consolidating and poised to test the RM3.69 resistance level. With its RSI indicator pointing upwards, coupled with sustainable trading volume, we think that there could be a technical breakout towards the shortterm target price of RM3.81 followed by RM3.88. In this case, the downside support is marked at RM3.50, whereby traders may exit on a breach to avoid the risk of a further correction

Trading Call: Buy on breakout RM3.69

Target: RM3.81, RM3.88 (time frame: 2-4 weeks)

Exit: RM3.50

Source: AmInvest Research - 8 Oct 2020