HTPADU (Not Rated). HTPADU’s share price surged 6.5 sen (9.5%) yesterday to RM0.75 after the company announced that it had signed a RM41.9m agreement with PNB for the supply, installation, commissioning, operating and maintenance of managed wide-area network infrastructure services. Earlier in January, the share price broke out of its sideways trend at RM0.57, and subsequently rallied to a high of RM0.695 before consolidating sideways. However, yesterday’s bullish move resulted in a strong breakout to confirm a “Bullish Flag” pattern. This signals that the share price is poised to resume its prior uptrend after a brief two-week pause. From here, expect further gains ahead, towards the “Flagpole” measurement objective of RM0.81. In between, resistance to look out for include RM0.765 (R1) and RM0.80 (R2) while downside support is located at RM0.68 (S1) and RM0.65 (S2).

FRONTKN (Take Profit @ RM0.23). Recall that we recently recommended a Trading Buy call on FRONTKN (report dated 10-Feb-2017), after the share price broke out from its multi-year downtrend resistance-turned-support trend line. Since our report, the share price had only managed to trend sideways for over a week before reaching out target price objective of RM0.23 recently. The daily RSI and Stochastic are currently regressing southwards to indicate waning bull momentum, suggesting that the stock could consolidate in the immediate-term. That said, we opt to lock in our profit (9.52%) for now and will re-look at the stock once its technical picture turns compelling again.

Source: Kenanga Research - 3 Mar 2017