FRONTKN CORPORATION BERHAD (Technical Buy)
• Following nine-day stabilization period, FRONTKN displayed an inverted hammer chart pattern in yesterday, hinting of a possible departure from its recent downward path.
• From a technical standpoint, despite the stochastic oscillator lingering in the oversold region, there is a potential for a trend reversal, which could initiate an upward trajectory if it successfully crosses above the 20-threshold level with determination.
• Moreover, the stock is positioned near the 200-day SMA line, suggesting that it has established a firm support base. This optimistic outlook is further substantiated by the Tom DeMark Pressure Ratio (TDPR), illustrating sustained buying interest.
• Looking ahead, we foresee FRONTKN approaching its immediate resistance at RM3.31 in the forthcoming period. A decisive overcoming of this key resistance could potentially lead to challenging higher levels at RM3.36 and eventually RM3.52.
• We propose an entry point for the stock at RM3.18, near the 200-day SMA line, targeting an initial price goal of RM3.31, offering a prospective upside of approximately 4.1%. In tandem, we recommend instituting a stop-loss limit at RM3.05 to mitigate a potential downside risk of 4.0%.
Source: Kenanga Research - 22 Sept 2023
Chart | Stock Name | Last | Change | Volume |
---|
Created by kiasutrader | Aug 23, 2024
Created by kiasutrader | Aug 23, 2024