Technical Pulse: UOL Ltd March 12, 2018

Technical Buy

UOL Ltd – Weekly timeframe (Update from 22 November 2017)

12 mar

*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.


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About the author

Profile photo of Jeremy Ng

Jeremy Ng
Investment 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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