FRONTKN (Not Rated)

• On Tuesday, FRONTKN gained 0.5 sen (+0.61%) to close at RM0.830.
• Chart-wise, the share has been enjoying a super rally since late-July. However, we think that the rally could be overextended and a retracement is likely to happen soon. Notably, Tuesday’s candlestick formed a “Long-Legged Doji” signaling a potential shift in sentiment.
• Momentum indicators such as RSI and stochastic have been hovering in the overbought territory since July, further suggesting the likelihood of a retracement
• We expect to see a healthy correction of the share price to RM0.750 (S1) and further to RM0.685 (S2) should the first support level be broken.
• Conversely, should the rally continue, Fibonacci projected resistances are seen at RM0.850 (R1) and RM0.950 (R2).

UCHITEC (Not Rated)

• UCHITEC gained 11.0 sen (+3.74%) to close at RM3.32 on Tuesday’s closing, backed by exceptional trading volume.
• Overall, its trend line has been positive, with the share continuously leading key SMAs upwards since it had bottomed–out in early-April.
• Meanwhile, key SMAs remains in a “Golden Crossover” state with momentum indicators also appear in supportive towards the upside.
• From here, expect the share to advance towards RM3.35 (R1) with a decisive breakthrough will see the share on a clear path towards RM3.60 (R2).
• Conversely, downside risks are identified at the immediate support level RM3.20 (S1) with the next support level found at RM 3.05 (S2).

Source: Kenanga Research - 23 Aug 2018