TECFAST’s share price had seen a downturn beginning from November of last year, and have not recovered since then. The spike in share price was mainly caused by huge contracts secured by the company but was not followed up by investor’s interest. However, our research team had noticed a slow down in selling pressure around RM0.300 level. We recommend a strong BUY based on the observation.

Support remains strong. Despite the downward momentum, we had seen TECFAST holding up well at the price of RM0.300. Being both a psychological support point and value-to-be-found level, the RM0.300 price point showed a higher weighted transacted volume on 5DVWAP.

Attractive reward. We noted two key resistance level that should be broken before a reversal of trend is confirmed. The first level being RM0.335 (R1) and the second level would be RM0.395 (R2). Based on the EP of RM0.300, the potential return would be 11.7% and 31.7%.

High Risk-to-Reward ratio. With the CL level of RM0.280, the maximum potential loss is 6.7%. Based on R1 & R2 potential return, the Risk-to-Reward ratio would be 1.74x and 4.73x respectively.

Conclusion. With limited downside risks, we see TECFAST as a relatively cheap vehicle to leverage on the recent Transportation & Logistics sector’s hike. We recommend a strong BUY based on the above observations.