UMS Ltd – Daily timeframe (Update from 15 August 2017)
*Entry Price: 0.985 Stop loss : 0.885 Take profit : 1.130
*UMS Ltd will be added to the Phillip 20 Portfolio once the trade is triggered
Current Sentiment: Bullish
Support 1: 0.890 Resistance 1: 1.035
Support 2: 0.860 Resistance 2: 1.130
Price fell precipitously after the last update and broke below multiple key support areas. The selloff has also led to the 20 day moving average to cross below the 60 day moving average on 21/08/17 signalling growing weakness. However, the confluence of the long-term 50% Fibonacci retracement level, 200 day moving average and 0.905 resistance turned support area seemed to have halted the selloff.
After rejecting the support area on 28/08/17, price consolidated around that area for the following four weeks with 0.905 acting as the range low and 0.950 acting as the range high. A bullish breakout to the upside finally occurred on 28/09/17 suggests a possible bottom here off the 29/08/17 low. In addition, the bullish break above the 0.955 range high was backed by surging volume suggests a reversal back into the long-term uptrend.
Expect price to head higher next to test the 1.035 resistance area followed by 1.130.
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