Airasia: Still in a long-term uptrend

Airasia has been holding very well despite the negative news flow from the recent plane crash. From the semi-log monthly chart below, we can see that it is still in a long-term uptrend line (SS) with support at RM2.40. This level is also a strong horizontal support. Thus, I believe the stock should stay at or above this level.

Due to lower fuel prices, Airasia has been rising gradually in the past 6 months. This intermediate trend ran counter the 3-year downward channel, AB-A1B1.

Based on technical outlook & expected improvement in the financial performance (flowing from lower fuel cost), I would rate Airasia a HOLD for now. It could be good for a slow accumulation at RM2.40 mark.


Chart: Airasia's monthly chart as at Jan 2, 2015 (Source: ShareInvestor.com)

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Airasia.