FRONTKN (Not Rated)

• FRONTKN climbed 4.0 sen (8.89%) to close at RM0.490.
• Yesterday’s move was supported by strong trading volume, forming a long white-candlestick which also indicates strong buying interest from the market.
• Overall technical indicators are promising with the MACD line crossing over the Signal line, and the share price is leading key SMAs upward.
• The share is poised to retest the RM0.520 (R1) resistance level. Should the buying momentum continue and break above R1 over the next few days, expect the next resistance level to be at RM0.585 (R2).
• Conversely, if the buying interest is not sustainable, support levels can be identified at RM0.455 (S1) and RM0.415 (S2).

PECCA (Not Rated)

• PECCA rose 4.0 sen (3.08%) to close at RM1.34.
• Yesterday’s bullish candlestick resulted in a downtrend breakout, potentially signalling that the share price has bottomed out and now poised for a recovery.
• Key indicators are in supportive of a move higher, with the RSI now venturing close to cross above 50-point mark with MACD has hooked upwards above signal line.
• From here, expect PECCA to retest its immediate resistance level of RM1.35 (R1). Should this level be taken out, next resistance level to target is RM1.42 (R2).
• Downside risk can be found at resistance-turned- support level at RM 1.30 (S1) and RM1.25 (S2).

Source: Kenanga Research - 20 Mar 2018