AIRASIA (Not Rated). Yesterday, both AIRASIA and AAX ranked among the most actively traded counters for the day. In particular, AIRASIA surged 10.0 sen (6.8%) to close at RM1.57 to form a long white candlestick after the company reported a stronger-than-expected earnings report card. The share price is looking to complete its ‘Rounding Bottom’ chart pattern by retesting its immediate resistance level of RM1.61 (R1). Indicator-wise, the MACD is currently undergoing a bullish convergence while a strong uptick is seen in the RSI, implying heavy buying momentum. Should the share price manage a decisive breakout above the RM1.61 (R1) level, it could trend further up towards RM1.80 (R2) in the near-term. On the flip side, failure to decisively break out from the aforesaid resistance level shall lead the share price to consolidate further towards RM1.41 (S1).

AAX (Not Rated). Meanwhile, AAX closed 1.5 sen (6.0%) higher at RM0.265 on trading volume, which hit an all-time high. Previously, the company had been on a two-and-a-half year down trend from its IPO in mid-2013 to early this year. However, the technical picture is showing a marked improvement on a near-term basis with the “Golden Crossovers” by all three major SMAs (20-, 50-, and 100-day SMA) earlier in January. For the first time since its IPO, AAX is also making higher highs and yesterday’s breakout above the RM0.235-RM0.25 congestion zone is likely a signal for further gains ahead. From here, we expect the share price to climb towards RM0.30 (R1) in the short term before a possible move towards RM0.35 (R2) next. Firm supports should be present just below at RM0.25 (S1) and RM0.235 (S2). 

Source: Kenanga Research - 2 Mar 2016