I noticed the stock price is different compared to my previous post. I’m not sure was it an issuance of bonus shares or right issue. Anyway, the price and volume remain the same. As for this post, the RM3.00 resistance is revised to RM2.10.
The stock was traded above RM1.96 after 19th July and the demand was weak to push up the stock price. It showed the possibility of a drop in price if selling happens. On 26th and 29th July, there were two upthrust candles with high volume which the second volume was higher compared to the first one. It was a solid indicator of selling below RM2.10 resistance. If you are still holding this stock, it would be wiser to sell the stock and reducing your losses. 31st July was the last chance to get out of this stock. Some investors hope for the stock to come back later; for chartists, we don’t.
On 1st August, the selling pressure continued and the weak RM1.95 support was penetrated. Normally that’s the time retailers realise the stock is not going the way they want and start selling. It will force the stock to drop 5 percents or more depends on the market.
Presently, the stock is testing the trendline. I reckon it might further test RM1.83 support. Airline companies favour low oil price and a good economy. That’s the time airline companies show good earnings. Fed reserve recent interest rate reduction might boost the economy but that’s also might increase the oil price. You must study this data to trade airline companies. (Click here for the full picture)