Axiata- to test its uptrend line support at RM3.00 soon

Axiata has come under heavy selling pressure today & yesterday. Looking at the 60-min chart (Chart 1), we can see that the technical indicators are fairly weak, with MACD going into negative territory; RSI oversold but not rebounding; and -DMI crossing above +DMI plus ADX trending higher.


Chart 1: Axiata's 60-min chart as at Oct 7, 2009 (Source: Quickcharts)

Despite the negative reading on the 60-min chart, we can take some comfort that Axiata should find good support at RM3.00, which is its medium-term uptrend line. If the uptrend line failed, the next support would be the horizontal line support at RM2.85-90. However, a break of the uptrend line support of RM3.00 (without a quick recovery) would change the technical outlook for Axiata from positive to negative.


Chart 2: Axiata's daily chart as at 6/10/2009 (Source: Tradesignum.com)

If the uptrend line support at RM3.00 holds, you may accumulate Axiata at or near its uptrend line.