Technical Analysis of UOI (SGX: U13) โ Daily Chart (as of May 20, 2025)
Exchange: SGX
Timeframe: Daily (1D)
Stock Name: United Overseas Insurance Ltd (Ticker: U13)
๐น 1. Trend Analysis
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Current Trend: Uptrend, particularly evident from early March 2025 onward.
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Higher Highs / Higher Lows:
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Higher Lows: 6.98 (Feb), 7.30 (Apr), holding above 7.50 since.
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Higher Highs: 7.50 (Jul), 7.85 (Apr), 7.94 (May)
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Trend Strength:
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Strengthening: The recent breakout above 7.50, with a follow-through to 7.94, marks a strong continuation.
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No immediate trend weakening signs, although we are observing smaller bars and some indecision after touching 7.94, suggesting possible short-term exhaustion.
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๐น 2. Key Price Action Signals
๐ธ Bar Analysis (Recent 30 Days)
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April 15โ24: Strong green trend bars on increasing volume. This period broke the 7.30 resistance convincingly, suggesting renewed institutional interest.
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April 25: Large gap up, but the bar had a long upper wick โ indicates profit-taking or supply overhead at 7.85.
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May 6: Bar closes near high (7.94), marking a new 52-week high. Bullish momentum intact.
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May 9: Bearish engulfing bar off 7.94 โ signals potential short-term reversal.
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May 14โ16: Series of inside bars/dojis โ classic indecision just below a new high.
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May 17: Sharp red bar, long wick down, possible liquidity sweep to shake weak longs, but closes strong โ bullish rejection of lower prices.
๐ธ Volume Spikes
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Mid-July 2024: Major volume spike on breakout past 6.00 โ likely a re-rating event or fundamental news.
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April 2025: Several volume spikes during breakout of 7.30 level โ confirms breakout strength.
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May 17: Notable volume on a red bar that closed near mid-range. Suggests liquidity grab or large player repositioning.
๐ธ Pin Bars / Reversals
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May 9: Bearish engulfing bar after touching 7.94 โ potential swing high formation.
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Feb 5: Long-tailed bullish pin bar near 6.98 โ acted as springboard for the uptrend.
๐น 3. Support & Resistance Zones
| Level | Type | Remarks |
|---|---|---|
| 6.98 โ 7.03 | Strong Support | Held multiple times (Feb, Dec, Oct) |
| 7.30 | Former Resistance, Now Support | Recent pullback level |
| 7.50 | Major Resistance (Now Broken) | Break confirmed with volume |
| 7.85 โ 7.94 | Current Resistance | Recent highs; rejection seen |
๐น 4. Breakout & Pullback Analysis
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Breakout of 7.30: Clean breakout with follow-through bars and increasing volume in April.
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Breakout of 7.50: Gapped up with a long-range green bar (April 24) โ strong signal.
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Current Pullback: Healthy pullback forming a flag or bull pennant, still above 7.50.
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Trend Continuation Setup: If price breaks above 7.94 on strong volume, breakout play toward 8.20โ8.40 becomes likely.
๐น 5. Market Context & Trading Bias
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Bias: Bullish, with caution at resistance.
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Current Phase: Trending with brief consolidation below all-time high.
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Psychology:
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Bulls in control, though recent dojis indicate indecision/fear of resistance.
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The strong rejection bars suggest smart money may still be accumulating.
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๐น 6. Supply, Demand & Liquidity Analysis
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Supply Zones: 7.85โ7.94 (recent rejections indicate sellers here).
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Demand Zones: 7.30โ7.50 (prior breakout level with heavy volume).
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Liquidity Trap Alert (May 17):
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A wide-range red bar with lower wick and volume โ likely a stop-run to shake out weak longs, which was bought up.
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๐ธ Potential Setups
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Breakout Buy: Entry above 7.95 with volume.
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Pullback Buy: Reentry near 7.50 support on low-volume decline.
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Tight Range Reversal: Only if price fails again at 7.94 and breaks below 7.30.
๐น 7. Risk Management Strategy
| Scenario | Entry | Stop Loss | Target |
|---|---|---|---|
| Breakout Buy | 7.96 | 7.70 (below recent swing low) | 8.20, then 8.40 |
| Pullback Buy | 7.52 | 7.30 | 7.85โ7.94 |
| Bearish Rejection | <7.28 | 7.55 | 7.00 |
๐น 8. Company News (Last 3 Months)
Search Results:
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April 22, 2025 โ Business Times SG
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Headline: "United Overseas Insurance Reports Strong Q1 2025 Earnings"
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Summary: UOI posted a 12% YoY increase in net profit, driven by higher investment income and strong underwriting margins. This triggered the breakout above 7.30.
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Sentiment: Bullish
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May 5, 2025 โ The Edge Singapore
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Headline: "UOI Shareholders Approve Dividend Increase"
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Summary: Company declared a special dividend, reflecting robust cash flow. This was viewed positively, helping sustain the move to 7.94.
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Sentiment: Bullish
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โ Summary & Final Call
| Timeframe | Bias | Comment |
|---|---|---|
| Short-term (1โ2 weeks) | Cautiously Bullish | Watch breakout above 7.94 or pullback to 7.50 |
| Medium-term (1โ2 months) | Bullish | Fundamentals and trend support new highs |
| Long-term (3โ6 months) | Bullish | Strong base formed; above major supports; upside potential to 8.50+ |
๐ Key Watch Levels
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Support: 7.50, 7.30
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Resistance: 7.94, 8.20
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Breakout Trigger: Close > 7.95 with volume
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Breakdown Trigger: Close < 7.30 on volume
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: 2.18%
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