After the climatic sell in early year 2018, AirAsia started to rally again in Oct 2018. The stock gained 67% and found resistance at RM3.00. Due to the discouraging quarter report on 27th Feb, the stock gapped down on 28th Feb with high volume. After the bounce in March 2019, the selling resumed and it found support at RM2.43.
On 30th May, the stock gapped up with high volume after 20th May quarter report that showed profit. However, the sellers were gaining control and the stock dropped to RM2.73. The RM3.00 resistance was tested again on 4th July and the stock is testing the trend line again.
Is that a trading opportunity?
Unfortunately, No. It is also not a good trade for short term; the possible gain is less than 10%. Further monitoring is required. Trade safely. (Click here for full picture)