After the recent January collapse in the stock market, I am now looking for any stocks are showing good momentum to take advantage of the cheap price. Airasia looks like one of them. I am now keeping a closer watch on this particular counter.
It has consolidated between a tight range of $1.30 and $1.45 for the past 3 months. Although the market fell, this stock seems resilient. And resilience is one good way to know the strength.
Technically wise, it might have a quadruple top breakout once the market turns better. Do take note that stocks that broke out after a triple top or a quadruple top might eventually come back and test its support. For this case it may be $1.45.
If the momentum is strong, in the mid term, if it reach $1.67, there might be a strong resistance and I will need to be careful there. That is also my profit target.
Stop loss is carefully set below the major support and the bottom price of the accumulation zone of $1.30, at $1.27.
Now: $1.41
Target: $1.67-$1.70
Stop loss: $1.27
