AIRASIA (5099)

MQ Fundamental Rating

It is a fundamentally good company which passes most of the fundamental tests (i.e. increased shareholder value). Thus, AIRASIA meets our MQ Trader criteria to be considered as a company with good fundamental (Fundamental rating > 2.5/5.0 for the time being. However, AIRASIA’s future prospect is challenged when AIRASIA plans to sell its cargo, food business and its stake in Expedia in the near term to repay its borrowing. Hence, we will wait for the release of financial results on the next quarters before deciding to hold this share for long term.

MQ Technical Rating

This stock has been encountering downtrend price movement since the beginning of August 2018. One of the main reasons for this phenomenon could be due to the recovery of Brent crude oil price which increase the operating cost of aviation sector.

Figure 1: ADX and OBV technical indicators on Daily Chart.

Figure 2: EMA 5 Crossover Daily Chart

Technical indicators such as OBV and ADX are still showing negative results, as the selling volume is still staying strong. According to EMA 5 Crossover, the last trading signal is a sell signal which is observed on 3/9/2018 indicating that there is no sign of rebound in share price for the time being. Figure 1 shows that more than 26.05% of loss can be avoided if AIRASIA’s share is disposed upon the appearance of sell signal on 3/9/2018.

Figure 3: MQ Live Backtesting result obtained by using EMA 5 Crossover on daily chart of AIRASIA

MQ Live Backtesting is also run to verify the presence of buy pressure by clicking the “Backtest” which is above the technical chart as shown in Figure 2. The result of MQ Live Backtesting is concluded as below:
 

MQ Robo Advisor Commentary

Background

MQ Signal Backtest service performed Live Backtesting on stock AIRASIA (5099) based on EMA 5 Crossover Trade Signal and Daily chart duration. Up to 5 years historical data were used for this Live backtesting service.

Test Result

A total of 15 Trade Signals were analyzed. The latest Trade Signal was detected on 17/08/2018. On average, the Backtest result shows that the best performance is achieved on T+3 after trading day with 53% success rate.

Overall, this Trade Signal achieved a MQ Signal Backtest Rating of 0.5/5 stars. This represents a Below Average rating. Traders may wait for other confirmation signals of another chart durration, or look for other trade opportunities.

Conclusion

In our opinion, we will put this stock into our watchlist until there is presence of catalyst that can bring positive impacts to this stock.  At the meantime, you can use our MQ backtesting feature together with MQ Trader screener to look for other potential stocks.

To know more about MQ Live Backtesting, please visit MQ Trader – Introduction to Backtesting,

MQ Trader Workshop

For those who are interested in MQ backtesting, you can visit MQ Trader Workshop - Budget 2019 Outlook & Backtesting With MQ Trader [Free Registration!] to know more about our coming workshop on 14 November 2018. 

*Note: 300 MQ Points will be given away in the workshop!

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Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

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