Technical Pulse: UMS Ltd September 29, 2017 777

Technical buy

UMS Ltd – Daily timeframe (Update from 15 August 2017)

29 sept

*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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About the author

Profile photo of Jeremy Ng

Jeremy Ng
Research Analyst
Phillip Securities Research Pte Ltd

Jeremy specialises in Technical Analysis and has 10 years of experience in studying price action. His areas of expertise include intermarket analysis on the equities, currencies, commodities and bonds market.

He is also a regular columnist on The Business Times - every Monday ChartPoint column.

He graduated with a Bachelor of Science in Banking and Finance from University of London.

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