Support 1: 26.58                     Resistance 1: 24.20                         

United Overseas Bank (SGX:U11)  bullish rise has halted and as such, we are revising the take profit price of our long call to current spot price at 26.25. Based on the technicals, we believe that a bearish correction is imminent:  

1. Double bearish pin bar at 78.6% of the range: 27.00 – 24.20.
2. Strong bearish candle closure below 78.6% and the bearish candle almost engulf the previous candle.
3. Strong area of supply confluence with the 78.6% of the Fibonacci level.

Stochastic overbought crosses. This signify the bulls are exhausted.

CHART LEGENDS

Stochastic Oscillator

Period =14

Red Line  = Overbought at 80

Green Line  = Oversold at 20

Blue line = 3 % K

Red Line  = 3% K