UOB Ltd – Weekly timeframe (Update from 5 July 2018)
*Entry Price: 26.67 Stop loss: 25.54 Take profit: 28.46
*UOB Ltd will be added to the Phillip 20 Portfolio once the trade is triggered
Current Sentiment: Bullish
Support 1: 26.00 Resistance 1: 27.20
Support 2: 25.81 Resistance 2: 28.46
The lack of bullish follow through after the last update led to price turning back into the immediate downtrend. Price headed down to test the critical 26.00 psychological support area once again. Interestingly, the current selloff was once again held up firmly by the 26.00 psychological support.
Despite price breaking below the 26.00 psychological support intra-week, the bulls succeeded in closing back above the 26.00 level in the week ended 20/07/18. As a result, a hammer rejection bar was formed suggests a reversal higher next. Moreover, the 26.00 psychological support area also coincided with the 60-week moving average and 61.8% Fibonacci retracement level reinforcing this support area as a strong one. The 26.00 psychological support was key interest area back in December 2017 and February 2018 with major reversal to the upside shown by the highlighted areas.
Thus with the current bullish price action rejection off the 26.00 support area, expect price to turn back into the long-term uptrend to test the 27.20 resistance followed by 28.46.
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