Report Date: October 24, 2024
Broker: CGS International

Company Overview

AirAsia X Berhad is a Malaysia-based, medium to long-haul, low-cost airline. It is an affiliate of the AirAsia Group and primarily operates flights using Airbus A330-300 aircraft. The airline serves routes across the Asia Pacific and the Middle East, with flight durations exceeding four hours.

Recent Performance and Technical Analysis

The report notes that AirAsia X continued its rally following a wedge breakout that occurred on October 19, 2024. The stock’s buying interest remained robust, pushing prices to test its 2024 high on October 23, 2024. The price action was marked by a strong white candle, which is a sign of continued upward momentum.

Entry and Price Targets

• Entry Price(s): RM1.90 – RM1.99
• Support Levels:
  • Support 1: RM1.80
  • Support 2: RM1.70
• Resistance Levels:
  • Resistance 1: RM2.06
  • Resistance 2: RM2.20
• Stop Loss: RM1.79

The broker suggests that traders consider entering at the specified price range or on dips, with a recommended stop-loss set at RM1.79, slightly below the low of October 22, 2024. The upside targets are RM2.06 and RM2.20.

Technical Indicators

• Moving Averages: The stock is supported by improving exponential moving averages (EMAs), which indicate a trend continuation.
• MACD (Moving Average Convergence Divergence): The MACD has confirmed a golden cross, which is a positive indicator suggesting further upward movement.
• RSI (Relative Strength Index): The RSI has strengthened, reflecting a buildup in buying momentum and supporting the outlook for continued gains.

Trading Strategy

The broker issues a “Technical Buy” recommendation for AirAsia X, noting the stock’s recent positive technical signals. The wedge breakout has paved the way for further gains, underpinned by strong buying momentum and improving technical indicators.

Traders are advised to consider long positions (buying) while maintaining a stop-loss at RM1.79. The projected upside targets of RM2.06 and RM2.20 are expected to be achievable as long as the stock maintains its current bullish trajectory, supported by the positive signals from both MACD and RSI indicators.