Price Slips Below $33.30 – Is UOB Losing Momentum?

$UOB(U11.SI)$ Weekly Chart – Technical Analysis

Price Action:

• UOB broke above the key resistance at $33.30 in early 2024, with a strong upward momentum.

• However, this move was not sustained, and the price has now fallen back below this resistance level.

• This may indicate a false breakout, where the price temporarily moves above a resistance level but fails to hold, often followed by a reversal.

False Breakout Implications:

• A false breakout can signal bull trap conditions, where initial breakout traders are forced to exit, adding selling pressure.

• It also suggests that buying strength may have been exhausted, and sellers have regained control.

• This kind of price behavior may trigger cautious sentiment in the near term.

Support & Resistance:

• Immediate resistance is now again at $33.30, the previous breakout level.

• Support lies around $27.10, which acted as a base during past consolidations in 2021 and 2022.

RSI:

• The RSI has dropped sharply to 21.58, entering oversold territory.

• This indicates the stock is experiencing strong downside momentum.

Trend Context:

• The overall trend before the false breakout was upward, but the sharp rejection at higher levels introduces short-term weakness.

• A period of consolidation or further correction may follow as the market reassesses the recent price action.

Using DLC to Tap Into the Current UOB Price Action

Daily Leverage Certificates (DLCs) offer a way to express short-term bullish or bearish views with leverage.

• 📉 Bearish DLCs (Short DLCs)

  Traders who anticipate further downside due to the false breakout may look to track Short DLCs on UOB (e.g., $UOB 5xShortSG261217(9XCW.SI)$ ).

  These move up when UOB share price moves down — amplifying the returns (and risks) in a falling market.

• 📈 Bullish DLCs (Long DLCs)

  With RSI now in oversold territory, some traders may watch for signs of technical rebound or stabilization.

  If such signals emerge, Long DLCs (e.g. $UOB 5xLongSG261217(W9AW.SI)$ offer exposure to potential price recovery with leverage.

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Disclaimer: 

This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only. 

This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.