The stock plummeted 4.76% on 5th August which confirmed the high volume upthrust on 29th & 31st July.
The down day candle also broke the uptrend and RM1.83 support lines.
This showed the possibility of further selling. However, on the next day
high demands hold the stock above RM1.74. The stock was traded above
RM1.74 for two days and the automatic rally closed the stock at RM1.88
on 9th August. The lack of volume indicated the automatic rally is weak and the stock was not able to hold above RM1.83.
Second high demands volume above RM1.74
The stock penetrated again the RM1.84 support on 22nd August. Then, it retested RM1.74 support with higher volume compared to the previous 5 trading days on 29th August.
The Doji candle closed at RM1.75 above RM1.74 support. Here, the stock
rallied 4.45% and another Doji candle occurred on 11th September. Traders must be alert on this Doji because it indicated supply below RM1.83.
Buyers vs Sellers
Current trading ranges of RM1.83 and RM1.74 indicated buyers and
sellers have not decided the next trend. If you are day traders, 5% gain
between this trading range could be a short term gain. Immediate cut
lost below RM1.74 must be set to avoid huge losses.
The selling might persist
The upthrust on 29th July
and recent prices drop showed the stock is weak. Furthermore, AirAsia
net profit is dropping for the last three quarters although the revenue
is increasing. Traders might rush in to accumulate this stock thinking
it is cheap currently. The stock price is decided by the supply and
demand on the market, the pricing of stock happens for some reasons. The
stock that looks cheap might get cheaper. E.g. Sapura Energy, Armada,
PA, TekSeng etc. Good earning is vital for a stock to trade at a higher
price. There are plentiful of uptrend stocks with good earnings in the
KLSE, smart traders would not keep their money in the downtrend stock.
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