UOB

UOB: CIMB have Technical Sell Call. Note that prices have been trading sideways within a large trading band of $17.90-21.10 for the past two yrs. It has broken below this trading band and this breakdown is negative for the stock. MACD continues to stay in sell mode while its RSI has hooked downwards from the neutral levels.

With the breakdown, expect prices to fall towards $14.70 in the medium term. However, a near term rebound is expected given the ST indicators are now oversold. Selling near the recent swing high of S$18.50 is a good option if there is a rebound. The MA’s would also act as a near term resistance. In the short term, prices could find support at $16.10.