AirAsia trending sideways, says AllianceDBS Research

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KUALA LUMPUR (Aug 22): AllianceDBS Research said AirAsia Bhd (AirAsia) had on Aug 21 tested last Friday’s high of RM3.27 before closing near the day’s low at RM3.24 (down 1 sen or 0.30%).

In its evening edition yesterday, the research house said AirAsia continued to trade above the 20-day (blue) and 50-day (red) moving average lines.

“Given the recent share price behaviour, the stock is likely to move between RM3.13 and RM3.33 in the coming few days.

“A crossover of RM3.33 should see further price rise to the next overhead resistance at RM3.42.

“However, a fall below RM3.13 would put pressure on the stock down to the subsequent support at RM3.02,” it said.

AllianceDBS Research said stock volume traded on Aug 21 was 4.51 million shares compared to the 3-month average volume of 11.1 million shares.

The research house said that indicators wise, the MACD was below the 9-day moving average line with the sell signal remains intact.

It said the relative strength index indicated that the stock was currently in a neutral zone.