Technical rebound seen in the making for AAX, says AllianceDBS Research

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KUALA LUMPUR (May 8): AllianceDBS Research said there was technical rebound seen in the making for AirAsia X Bhd (AAX) and said AAX had on May 7 traded higher to 40.5 sen before closing near the day’s high at 40 sen (up 2 sen or 5.26%).

In its evening edition yesterday, the research house said AAX continued to stay below the 20-day and 50-day moving average lines.

The research house said following the up close on May 7, the stock is likely to move towards the immediate hurdle at 43 sen in the coming few days.

“A crossover of 43 sen should see further price rise to the next overhead resistance at 46 sen.

“The support is at 37.5 sen. A fall below 37.5 sen would put pressure on the stock down to the subsequent support at 35 sen,” it said.

AllianceDBS Research said stock volume traded on May 7 was 15.1 million shares compared to the 3-month average volume of 6.06 million shares.

The research house said that indicator wise, the MACD was below the 9-day moving average line.