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Tuesday, November 9, 2010

AirAsia technical analysis from Technical Analysis Talk

Recently I made some requests to a fellow blogger who is from the "other side" - Technical Analysis. Often I like reading his analysis and charts, and sparkled by the beautiful lingo used such as symmetrical triangle, ten black candles, head and shoulders (not the shampoo) and MACD (not MacDonald's!)

First were the round-up of rubber stocks in response to the recent trend in commodities and flooding that may have potential effects on pricing and supply and thus value of shares related to rubber gloves and such.

And my final request was for AirAsia - my favourite stock that I had been holding for over 3 years - and sold earlier last month at $2.34. It was all of my holdings of AirAsia in one go.

I really like AirAsia and one of my strategy or motto is to buy stocks that I use personally. Being an avid traveller, AirAsia has been my number choice since 2003. I have clocked over 90 flights - one way calculations. Some flights I do a combo of one-way trips for instance. KUL-Hanoi. Then Hanoi to Bangkok. Then Bangkok back to KUL. This is a tremendous advantage AirAsia has over other "regular commercial" airlines. Normal airlines will want you to do a return trip for e.g. 800 RM for KUL-BKK AND must be completed in 2 weeks. And one-way fare you get "penalise" with a hefty fare of 600 RM. Meaning consumers are literally funnelled into buying two ways, and make their holiday plans around a duration set by the airline. Yes you can buy a one-year return ticket. Price - over 1200 RM. So this is one fact and also factor, that tilts to AirAsia and the consumer's favour. While normal airlines want to load up the return leg of the flight with the same passengers, AirAsia's gameplan is if you book early like 8 months ahead, then you get the lowest fares.

Back to why I sold. I have been holding the stock for over 3 years. And to realise the profit was the basic reason. While I have since bought back some of the lots that I sold for a "premium" of 15 sen - buying them back around $2.50. I still see positive upward signs coming. The horizon might be 2-3 years while the benefits and potentials are there. See my previous postings on AirAsia by clicking on the "AirAsia" label on the right panel bar.

So here is some nice technical analysis talk by Radhys on AirAsia: (thank you Radhys)

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