• Technical BUY with +33.8% potential return
• Last price: RM0.37
• Target price: RM0.42, RM0.495
• Support: RM0.335
• Stop-loss: RM0.33

BUY with a target price of RM0.495 and stop-loss at RM0.33. Since correcting from the all-time high of RM0.425 to a low of RM0.275, share price is recovering gradually and moving above the 7-day and 21-day EMAs, effectively reversing its downtrend. Yesterday, FRCB managed to penetrate the breakout level of RM0.37 on high trading volume, which indicates a genuine breakout. We expect the stock to move towards our targets of RM0.42 and RM0.495. This bullish signal is accompanied by positive readings of the RSI and a bullish crossover in both the MACD and the DMI.

Expected Timeframe: 2 weeks to 2 months

Source: UOB Kay Hian Research - 7 Sept 2017