business
AirAsia X’s immediate resistance seen at 37 sen, says JF Apex Securities
Airasia X Bhd has crossed above the 100-day and 200-day moving averages thus signalling a bullish trend. – Reuters file pic, March 8, 2016. JF Apex Securities Research said AirAsia X Bhd suffered a long downtrend since hitting an intraday high of 72.5 sen back in August 14, 2014 but recently reversed the decline from its record low of 15 sen on August 25, 2015.
In a note today, the research house said the 50-day moving average has crossed above the 100-day and 200-day moving averages to signal a bullish trend.
The research house said the share price has also broken the long-term downtrend line as well as the 23.6% retracement line.
“Technical indicators are positive with the MACD having crossed above signal line earlier this month and the RSI has climbed into the overbought region.
“Immediate resistance is seen at 37 sen marked by the 38.2% Fibonacci retracement line.
“Second resistance is marked by 50.0% Fibonacci retracement line at 44 sen. Following recent gains, traders can wait for a pull back before entering,” it said.
The research house said that for the downside, we advise traders to cut loss if the price falls below the immediate support of 25 sen, seen at previous resistance.
It said the second support is seen at 21 sen marked by the 200-day moving average. – The Edge Markets, March 8, 2016.
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