UMS Holding Ltd (SGX: 558) rebound after a strong down move in Mid-February 2021 rebounded strongly in early March 2021. Although UMS has yet to clear the high, the technical indicate that UMS is likely to rally higher:

1. The Ascending triangle formation is indicative of a strong upside with multiple testing of the resistance zone at $1.40 region. The testing will result in a weaken resistance.
2. The internal cup and handle formation within the ascending triangle is an added bullish continuation pattern. Beside that, the handle which can be interpreted as a bullish flag has a bullish hammer within that can constitute as a shortfall. Hence, the bullish continuation upside is bound to continue.
3. The short-term bullish crossover is indicative of a stronger bullish continuation. Besides that, prices are still trending above all three moving averages.

*Timeline of the trade is 6 weeks from the date issued.

*Should there be a failure to break the resistance zone, further sub-corrective waves can travel lower to $1.25 region at support zone 1.

CHART LEGENDS

Moving average

Red dotted line = 200 periods Moving Average

Blue dotted line = 50 periods Moving Average

Green dotted line = 22 periods Moving Average