Technical Pulse: United Overseas Bank Ltd August 8, 2019

Support 1: 25.45                     Resistance 1: 27.00                         

United Overseas Bank’s resumption of its bullish momentum will be sooner than expected. All technicals are pointing to a positive move. Firstly, the morning star formation is above the 200 SMA strong support level. Secondly, the 3rd candle of the morning star has a strong closure above 50% Fibonacci retracement level of the total range and bashing above 50 SMA.

On the indicator side, the Stochastic oversold crosses indicate that the stock has entered into an oversold zone and is preparing to stage a bullish reversal. Perhaps the highest conviction is the golden cross when the 50 SMA crosses above the 200 SMA.

CHART LEGENDS

Stochastic Oscillator

Red line = % K Line 3

Blue line = % D Line 3

Periods = 14

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Profile photo of Chua Wei Ren

Chua Wei Ren
Technical Analyst
Phillip Securities Research Pte Ltd

Wei Ren specialises in Technical Analysis and has 9 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory and Supply & Demand strategies as he believes that history plays an important role in how the market is reflected in the future.

He graduated with a Bachelor of Economics and Finance from University of Murdoch.

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