UOL Ltd – Weekly timeframe (Update from 22 November 2017)
*Entry Price: 8.83 Stop loss : 8.17 Take profit : 9.38
*UOL Ltd will be added to the Phillip 20 Portfolio once the trade is triggered
Current Sentiment: Bullish
Support 1: 8.25 Resistance 1: 9.11
Support 2: 7.95 Resistance 2: 9.38
Due to the failure to break above the 9.49 resistance area after the last update, price went into a sharper correction. Price fell -12% from the 9.38 high in January 2018 but the selloff was halted by the 8.25 resistance turned support area in February 2018 suggesting the long-term uptrend is still intact.
The subsequent bullish follow-through suggests that the uptrend might have resumed as price succeeded in closing back above the 20 week moving average on the week ended 09/03/18. Moreover, the recent bullish rejection off the 8.25 resistance turned support was backed by increasing volume signals growing interest.
Expect price to turn back into the uptrend once the bullish follow-through occurs where buyers target the 9.11 resistance area followed by 9.38. For this upswing, the intra-week low of 8.18 could be the next higher low (HL) point for this uptrend.