Support line

PERSISTENT selling dragged Axiata Group shares to a low of RM4.37 during intra-day session, the worst since September 2010. Technically, the single-digit reading on the stochastic suggests oversold position, thus offering hopes of a relief recovery in the immediate term. However, the upside potential is likely to be limited, as the moving average convergence/divergence histogram remains bearish. Initial resistance is expected at the RM4.63 and subsequent RM4.75 barrier, which is the 14-day and 21-day simple moving average. A crack of the RM4 mark may pull prices down to the RM3.72 area, which is the 61% Fibonacci retracement of the previous bullish wave.

EA Technique