MAS breaking below its horizontal support of RM2.90

On December 22 last year, Malaysian Airline System Bhd ('MAS') announced a 1-for-1 Roghts Issue at RM1.60. Shortly thereafter, MAS broke below the psychological RM3.00 level as well as the horizontal support of RM2.90. The next strong horizontal support levels are at RM2.40-50. I see the latter as a good entry level for a trading BUY on this stock.


Chart 1: MAS's daily chart as at Jan 7, 2010_3.50pm (Source: Quickcharts)


Chart 2: MAS's weekly chart as at Jan 7, 2010_3.50pm (Source: Quickcharts)