AirAsia Berhad HEFFX Highlights

AirAsia Berhad HEFFX Highlights

AirAsia Group Berhad is a Malaysia-based investment holding company, which manages AirAsia Group operating in the airline industry. The Group is principally engaged in the operation of AirAsia, a low-cost airline with major business in Malaysia, Thailand, Indonesia, the Philippines, India and Japan, among others. The Company’s subsidiaries include AirAsia Investment Ltd and Koolred Sdn Bhd, investment holding companies; AirAsia Go Holiday Sdn Bhd, a tour operating company; AirAsia (Mauritius) Limited and Asia Aviation Capital Limited, aircraft leasing companies; Ground Team Red Sdn Bhd, a special purpose vehicle for financing arrangements required by the Group; TPaay Asia Sdn Bhd, a provider of financial and other related services; Rokki Sdn Bhd, a multimedia content and equipment trading company, and T & Co Coffee Sdn Bhd, a coffee and tea product trading company.

Overall, the bias in prices is: Downwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 2.76.

The projected upper bound is: 2.66.

The projected lower bound is: 2.25.

The projected closing price is: 2.46.

AIRASIA GROUP closed down -0.060 at 2.470. Volume was 37% above average (neutral) and Bollinger Bands were 7% narrower than normal.

OpenHighLowCloseVolume
2.542.562.452.4712,700,500

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages:10-period50-period200-period
Close:2.622.872.76
Volatility:254445
Volume:7,632,8899,164,7229,091,562

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

AIRASIA GROUP is currently 10.4% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect very strong flows of volume out of AIRA.KL (bearish). Our trend forecasting oscillators are currently bearish on AIRA.KL and have had this outlook for the last 38 periods. Our momentum oscillator is currently indicating that AIRA.KL is currently in an oversold condition.

Momentum

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 6.3830. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 7 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 25.96. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 48 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -254.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 6 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 1 period(s) ago.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.

During the past 10 bars, there have been 2 white candles and 6 black candles for a net of 4 black candles. During the past 50 bars, there have been 16 white candles and 29 black candles for a net of 13 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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