Airasia broke the horizontal support at RM2.20 yesterday and closed at RM2.16 (see Chart 1). Instead of recovering, it went down further to RM2.04 as at 4:00pm today. The stock is likely to test RM2.00 next week. I will be very surprise if the RM2.00 psychological mark were to fail if a decent fight. Having said that, I believe the strong support will surface when the stock reach the RM1.80 mark. This is the confluence of the horizontal support and the lower line of the downward channel that dates back to 2011.
Chart 1: Airasia's weekly chart as at May 22, 2015_3.55pm (Source: ShareInvestor)
Chart 2: Airasia's monthly chart as at May 22, 2015_3.55pm (Source: ShareInvestor)
I expect more weakness or downside for Airasia for near term. Good entry will be at RM1.80. For the braveheart, you can try a bit at RM2.00.
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.
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