United Overseas Bank (UOB): Head and Shoulders on Sight!

UOB has formed a Head and Shoulders pattern which is a trend reversal pattern, and currently trading just above the neckline of $18.10. UOB share price is trading below the 20D, 50D and 200D MA as well. Breaking below this neckline will confirm the breakout and send UOB share price to $15.30. The chart looks bearish and downside risk is higher than upside potential. It is better to be safe instead of going long.

This Post Has 4 Comments

  1. RL

    31/08/2010 had a super high volume long-legged doji.
    Today’s low was support at the intraday low of the doji.
    Today formed a spinning top. (indecision and a potential reversal)

    Volume today is lower than the long-legged doji, indicating that less selling enthusiasm on this re-test of that low.

    Volume today is higher than the average volume, indicating strong participation and could be strong support at the re-test low.

    Current price is at the uptrendline that started in early Aug 2009.
    Current price is also at the 38% Fibo from the July 2009 low to the April 2010 high.
    IF (a BIG IF) tomorrow form a morning star pattern, or any other bullish sign, better start thinking hard…

  2. RL

    Bullish Engulfing formed today, engulfing the preceeding 2 candles.

  3. Marubozu

    Yes. Rebound from the 78.6% FR suppport. Let see whether can break the 20D MA resistance.

  4. RL

    I think the Bullish Belt Hold Line from Friday and the reasons I stated above made a good enough reason to buy already.
    Downside risk is lower than upside potential.
    At this moment, I disagree on the existence of a H&S yet and a neckline at $18.10.
    On my chart, horizontal support is at $17.84 and it has not been penetrated yet. If price drops below $17.84, then I will conceed that there is a breach of the neckline.

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