Technical Analysis Report: United Overseas Insurance Ltd (UOI.SI)
Exchange: Singapore Exchange (SGX)
Stock Code: U13
Timeframe: Daily Chart (1D)
Date of Last Candle: Tuesday, 27 May 2025
Current Price: SGD 7.75
🔍 1. Trend Analysis
Current Trend: Uptrend with recent consolidation
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From April to early August 2024, a strong uptrend is observed, starting from ~SGD 5.60 to SGD 7.50, showing consistent higher highs and higher lows.
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Consolidation Phase: August 2024 to February 2025 saw a range-bound structure between SGD 6.98–7.30, with no clear directional bias.
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Recent Breakout: In March 2025, price broke out of this range, printing a series of higher highs:
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7.50 ➝ 7.85 ➝ 7.94
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Higher lows: 6.98 ➝ 7.30
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The trend remains bullish, but two recent high-wick bars and a gap signal potential weakness or profit-taking.
🔔 2. Key Price Action Signals (Bar-by-Bar Focus)
🔹 Volume Spikes
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July 2024: High volume green bars with large body candles initiating the uptrend. Follow-through confirms accumulation and breakout.
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Late February 2025: Significant bullish engulfing candle with large green bar and volume spike, closing near the high = bullish conviction.
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Recent Bars (May 2025):
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Gap up candle on 24 May to 7.94, followed by an upper wick and close below high — potential buying exhaustion.
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27 May bar shows indecision after a down gap — potential pause or short-term reversal.
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🔸 Pin Bars & Engulfing Bars
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29 Feb 2025: Bullish engulfing at 7.30 → major reversal point.
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Early May 2025: Strong bullish bar (7.30 ➝ 7.85) confirmed breakout.
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Recent Pin Bar: On 24 May, a long upper wick, closing near the low suggests bullish rejection at resistance.
🔹 Inside Bars & Doji Bars
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Multiple inside bars formed during the consolidation from Aug 2024–Jan 2025 = low volatility accumulation.
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Recent tight-ranged candle on 27 May = indecision → watch for breakout direction.
🔸 Gap Ups/Downs
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24 May: Gap up to 7.94, but lack of follow-through and rejection wick = possible bull trap.
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Recent gap down on 27 May suggests weak follow-through and increasing selling interest.
📈 3. Support & Resistance Levels
Major Support Zones:
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SGD 7.30: Clear support (double bottom in Feb 2025).
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SGD 6.98 – 7.02: Multi-touch level from Sep 2024 – Feb 2025.
Major Resistance Zones:
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SGD 7.94: All-time high and rejection level.
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SGD 7.85: Initial breakout level – now a test zone.
🔄 4. Breakout & Pullback Analysis
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Breakout (Mar 2025): Strong with high volume → confirmed breakout of consolidation range.
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Pullback (May 2025): Currently forming; potential bull flag setup if price holds above 7.30.
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If price drops below 7.30, it invalidates bull flag and may re-enter consolidation.
🧠 5. Market Context & Trading Bias
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Primary Bias: Bullish
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Short-Term Bias: Cautiously Bullish to Neutral (due to recent indecision bars and long wicks).
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Trader Psychology:
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Recent candles show signs of greed followed by fear (profit-taking above 7.85).
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Current volume and wicks reflect uncertainty at highs and lack of momentum follow-through.
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🧭 6. Supply, Demand & Liquidity Analysis
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Demand Zone: 7.30 – 7.50; defended several times.
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Supply Pressure: Above 7.85; wick rejections indicate selling.
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Liquidity Trap Alert: 24 May gap up and reversal may have trapped late buyers.
📊 7. Risk Management Strategy
Scenario 1: Bullish Breakout Confirmation
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Entry: On breakout above 7.94 with strong volume.
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Stop-loss: Below recent support at 7.30.
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Target 1: SGD 8.40 (psychological level).
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Target 2: SGD 8.70+ (measured move from previous range).
Scenario 2: Pullback Buy
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Entry: Near 7.30–7.40 with bullish price action (engulfing, hammer).
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Stop-loss: Below 6.98 (last significant low).
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Target: Retest of 7.85–7.94 zone.
Scenario 3: Breakdown Play
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Entry: If price breaks and closes below 7.30.
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Stop-loss: Above 7.50.
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Target: 7.00 – 6.98 range.
📰 8. Recent News Check (Last 3 Months)
Company: United Overseas Insurance Ltd (UOI.SI)
Search Summary:
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[April 30, 2025] – UOI Reports FY2024 Financial Results
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Source: SGX Company Announcements
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Summary: Net profit rose 8.3% YoY on higher underwriting profit. Combined ratio improved. Dividend declared at SGD 0.30/share.
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Sentiment: Positive – supports bullish case.
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[May 15, 2025] – Sector-Wide SGX Insurance Roundup
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Source: The Business Times
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Summary: Analysts bullish on Singapore insurers due to rising rates and stronger capital buffers.
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Sentiment: Sector-wide tailwinds.
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[March 2025] – Board Changes and AGM Notice
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Source: SGX Press Release
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Summary: Routine board refreshment, no material market impact.
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Sentiment: Neutral
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✅ Final Summary & Call
| Timeframe | Bias | Notes |
|---|---|---|
| Short-Term (1–2 weeks) | Neutral to Cautiously Bullish | Await breakout above 7.94 or strong rejection at 7.30 |
| Medium-Term (1–3 months) | Bullish | Healthy breakout above long-term range. Strong support at 7.30. |
| Long-Term (6–12 months) | Bullish | Sector strength, financial growth, and uptrend intact. Potential target: SGD 8.70+ |
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: 2.19%
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