The monthly chart shows Axiata trading within a downtrend channel (black lines). It recently touched the lower border of the channel around RM3 which is also the target price (TP) of the head and shoulders break down shown below (blue line and arrows),
Thus far Axiata has rebounded from the RM3 support. Potential resistance and TP for the rebound may be placed around the base of the head and shoulders pattern (blue line) and the upper border of the descending channel.
Axiata is in a long term downtrend. As such, any long position should be taken with care.
Long positions may be taken on possible successful rebounds from the lower border of the channel.
Taking some risk off may be considered when prices approach the upper boarder.
Unless the downtrend reverses, in the long run, prices could be heading towards the RM1.55 potential support along the descending channel.
A trend reversal could of course occur at any time.
Disclaimer: I hold shares in Axiata Group and plan to add more shares for long term investment. Axiata currently makes up less than 5% of my total stock portfolio.