Naked Chart Trading: FRONTKN 7 May 2024

After Microsoft announces USD2.2 billion investment to fuel Malaysia's cloud and AI transformation, I pay close attention to related Malaysia stocks that can be benefited from the AI boom. Even though Malaysia stocks are not directly involved in AI, but Frontken benefits indirectly because of its successful cleaning business with major foundries in Taiwan, which is its main source of income.

FRONTKN is testing new record high after Jan 2022. There was a sharp retracement after Jan 2022 high all the way to Jul 2022 low. Since then, the price trend had formed a health bull trend with higher highs and lows.

According to Fibo extension level, the price currently 161.8% around RM4.20. Next resistance level will be 200% RM4.80 if price is able to sustain above RM4.20 level. Support will be at RM3.60 followed by RM3.30. There is no signal of retracement now and the price in longer term should be able to sustain above RM3.30, with short term support at RM3.80 if there is a technical correction

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