Technical Analysis of UOB Kay Hian (SGX: U10) – Daily Chart
1. Trend Analysis:
- Trend Direction: Strong uptrend since mid-2024, with consistent higher highs and higher lows.
- Recent Higher Highs & Lows:
- Higher highs at 1.69, 1.99
- Higher lows at 1.55, 1.65
- Signs of Weakness: Recent pullback from 1.99 to 1.79, indicating possible short-term correction.
2. Key Price Action Signals:
- Strong Trend Bars:
- The breakout past 1.60 had strong bullish momentum, followed by steady gains.
- Large green candles indicate strong buying interest.
- Reversal Patterns:
- Bearish rejection near 2.00, suggesting selling pressure at resistance.
- A possible lower high formation could signal trend exhaustion.
- Consolidation Signs:
- Sideways movement around 1.30 - 1.42 in early 2024 before the breakout.
- Pullback testing prior breakout zone near 1.79.
3. Support & Resistance Levels:
- Major Resistance: 2.00 (psychological level, rejection observed).
- Key Support Zones:
- 1.79 (current level, prior breakout area).
- 1.65-1.69 (prior swing high, potential demand zone).
- 1.55 (stronger long-term support).
4. Breakout & Pullback Analysis:
- Breakout Strength: The 1.60 breakout was strong, with consecutive bullish bars and minimal retracement.
- Pullback Analysis:
- The pullback from 1.99 to 1.79 is sharp but still within trend structure.
- If 1.79 holds, another move higher could develop.
- If price falls below 1.79, expect a deeper correction to 1.65-1.69.
5. Market Context & Trading Bias:
- Trending Market: The stock remains in an uptrend but facing short-term resistance.
- Potential Shift: If price fails to reclaim highs, a transition to consolidation or downtrend could occur.
- Trader Sentiment:
- Bullish Bias: As long as price holds above 1.79.
- Bearish Caution: If lower highs form below 1.90, trend exhaustion could follow.
6. Supply & Demand & Liquidity Analysis:
- Liquidity Zones:
- High trading volume at 1.60 breakout suggests strong demand.
- Lower liquidity near 2.00, leading to rejection.
- Potential Trade Setups:
- Pullback Buy: Near 1.79 with a stop below 1.75.
- Breakout Play: Entry above 2.00, confirming strong buying momentum.
7. Risk Management Strategy:
- Entry:
- Buy above 1.79 support for a potential continuation.
- Wait for a break above 2.00 for confirmation of further upside.
- Stop Loss:
- Below 1.75 if buying near 1.79.
- Below 1.65 if deeper correction occurs.
- Profit Targets:
- Short-term: 1.90
- Medium-term: 2.10-2.20
Conclusion:
- Primary Bias: Bullish, as long as price stays above 1.79.
- Key Watch: Reaction at 1.79 and potential retest of 2.00.
- Trade Plan: Look for buying opportunities near support or breakouts above resistance.
Disclaimer:Please note that this analysis is for educational purposes only and should not be taken as investment advice. Trading involves significant risk, and you should consult with a financial advisor before making any decisions.
Dividend: 5.17%
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