Frontken saw a sudden jump, as buying interest emerged above MYR3.25. The stock is touching the 21-day SMA line or near MYR3.50, with higher trading volume. We believe it is ready to resume the uptrend, after weeks of consolidation since late October. If it crosses the 21-day SMA line, the next hurdle will be at MYR3.75, followed by MYR4.00. A downside breach of the MYR3.25 support would negate this expectation, and this may lead to a stock price correction.

Source: RHB Securities Research - 8 Dec 2020