FRONTKN (Trading Buy, TP @ RM0.22; SL @ RM0.195). FRONTKN has resumed its uptrend trajectory after consolidating over the past month, climbing 2.0 sen (10.53%) to stage a breakout from its multi-year downtrend resistance-turned-support trend line to close at RM0.21. The underlying outlook is positively intact, supported by up-trending SMAs. MACD line has also staged a bullish crossover in tandem with a positive uptrend seen by the RSI, laying a hand on the bullish-bias outlook. Should there be follow-through buying interest, FRONTKN could look to gear towards RM0.21 (R1) and possibly RM0.22 (R2) to complete its ‘Rounding Bottom’ chart pattern. Key support levels to note are RM0.195 (S1) and RM0.175 (S2).

GKENT (Not Rated). GKENT has underwent a technical pullback for three consecutive session over the past week. Nonetheless, it appears that the share price has managed to halt its decline after rebounding 7.0 sen (2.45%) to form a bullish ‘Morning Doji Star’ candlestick pattern, closing at RM2.93 on Wednesday with increased trading volume. Key technical indicators are also in a healthy position, with the RSI and Stochastic making a hook-up reversal from their respective oversold levels. With follow-through buying, GKENT could look set sights to climb towards RM3.00/RM3.10 (R1) in the immediate term. Nonetheless, upside is rather capped unless a decisive takeout of the RM3.10 level occur, which would clear the path towards RM3.30 (R2). Key support levels are seen at RM2.83 (S1) and RM2.70 (S2).

Source: Kenanga Research - 10 Feb 2017