Highlights / Stock Picks of the Day - Airasia Berhad

Airasia Bhd's ("Airasia") share price was heavily sold down in the past month following the launch of Malaysia-based rival budget airline, Malindo Airways. Having tested two crucial support lines, the share price eventually staged a rebound from a low of RM2.81 to end at RM3.05 on Monday. The MACD has now managed a signal line crossover while the Stochastics indicator and the RSI have both emerged from oversold levels, indicating a shift of momentum from bearish to bullish. With that, the short term technical picture has improved significantly and should the share price overcome the RM3.05 FRTL, further gains may be expected towards RM3.21 and RM3.33 next. The downside support remains pegged at RM2.81.


Source: Kenanga