Buy UOB stock now? Is it good time to catch the bottom? United Overseas Bank, UOB gaped up on December 1, 2011 open at 15.99. It broke up of the 20 days EMA, but for the short term trader and investor who bought at the low start to take profit. It drove the price down and the day ended at 15.73 lower. At one point it even went down to 15.68 and touch the 20 days EMA.
This was the highest point after the last MACD bearish divergence in the beginning of November. First the price formed a double top and the MACD show weak in histogram completed a lower top. The price broke down the trendline. It retraced back to the 20 days EMA to find it resistance. For those that short the break out did not take profit fast enough may be exit now to prevent losses. Trading is risky, you have to know how to manage your risk.
Now the price is at a resistance zone. The next resistance will the neckline for the double bottom. If price does not at resisted by these to level it may break higher. It will come back to find the support at these two levels. You can monitor and see the outcome for yourself.
Trading is personal. The price is cheap but it can get cheaper. Trading is high risk. It is always wise to but stop loss. The sharing here is just an illustration on some expect of technical analysis; a logical left brain thinking process. No buy or sell suggestion.
Disclaimer
The above result is for illustration purpose. It is not meant to be used for buy or sell decision. We do not recommend any particular stocks. If particular stocks of such are mentioned, they are meant as demonstration of Amibroker as a powerful charting software and MACD. Amibroker can program to scan the stocks for buy and sell signals.
Technical Analysis, TA is a science and an act. It provides a step by step analysis process of price and volume. Price chart is one of the important tool in TA. It shows the high probability of the possible future price move.
Users must understand what TA, MACD and price action are all about before using them. If necessary you should attend a course to learn more on Technical Analysis (TA) and Moving Average Convergence and Divergence, MACD.
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