Traditionally, a defensive counter, Axiata's share price has been steadily inching higher since the start of the year. In the past two months though, the stock has formed a short term top in the absence of any positive newsflows. On Monday, Axiata rose 21 sen to close at RM6.20. The volatility breakout of the upper bollinger band confirmed what resembles an ascending triangle pattern, accompanied by the MACD histogram crossing again into  the positive territory. Along with the MACD-Signal line crossover, the  indicator suggests an increase in upward momentum as well as a continuation of the uptrend. With the breakout, the measurement objective is now at the region of RM 6.60/70 with a stop-loss level placed just below the resistance-turnedsupport level of RM 6.10.

On the weekly chart, Axiata formed a "Long White Candlestick" pattern, indicating that buyers have overcome sellers after a brief tussle. The rise in the share price  came in a timely manner, having grazed at the short term support  line. The move was necessary to prevent further deterioration of  the short term technical picture. As it stands, the medium to long term technical outlook remains solid with momentum and relative strength likely to continue.