FRONTKN saw some heavy profit-taking activities after it rose to its all-time high level a few days ago. Key indicators are suggesting that the technical correction could be prolonged further to neutralize it overbought situation. MACD indicator is poised for a bearish crossover which will end its one-month bullish outlook. Meanwhile, both Stochastic and RSI indicator are also trending down south from their respective overbought region to imply that selling momentum is pilling up. All in, we advocate investors to wait for the share price to retrace towards its immediate support level of RM0.23 (S1) and look for a reversal signal before entering the stock.

Source: Kenanga Research - 29 Apr 2015