Previously, UEM Land Holdings has confirmed an inverted
“Head and Shoulders” pattern with a neckline breakout accompanied by increased volume.
As the pattern unfolded, the share price broke upwards before forming a short
term congestion zone at the RM2.05
level. The price eventually managed to penetrate the resistance level at
RM2.08 with a cross of the 20-day SMA over the 50-day SMA in the process. With
the completion of the Head and Shoulders pattern as well as the golden
crossover, the technical picture is fast improving and could indicate a
reversal of its medium term downtrend.
The next level of resistance is now
within view at
RM2.12 and subsequently,
the support-turned-resistance level of
RM2.15. Support in the meantime can be found just north of the 20 and
50-day SMA at RM2.00.
On the weekly chart, the share price has formed a large
symmetrical triangle trading range. As the support and resistance lines
converge towards the apex, a rounding top was also formed as investors locked in
gains after a decent rally (since September). That said, despite this being
generally a bearish pattern, it was however formed amid declining volume, which
hence still supports our now positive view of the stock. With the price
action now inching higher, UEM Land may look
to retest the RM2.08 resistance. A convincing close above this level would
indicate further gains towards the recent high of RM2.48, and subsequently
RM2.80. Support is likely to be provided at RM1.90/95.
Source: Kenanga
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