Sep 25, 2015

UEM SUNRISE – Bullish Flag Pattern

UEMS Stock Code: 5148

UEMS lost approximately 50% of its value from the high of RM1.40 in merely 5 months. What caught our interest was that the share price has broken above the downward-sloping resistance level with a surge in volume, while a bullish “Flag” pattern has been formed. This could indicate that the sentiment for this stock has turned positive and an uptrend is underway. On Wednesday, UEMS rose 7.48% or 8.0 sen to RM1.15. Despite the MACD histogram widening, both Stochastic and RSI are inching into the overbought territory, suggesting that a short consolidation is imminent. All in, should the buying interest persist, we reckon that the RM1.25 and RM1.31 levels should make decent targets. Traders who are keen to buy into the stock may do so between RM1.03 – RM1.06, while a tight stop loss of RM1.00 should also be placed just below the trend line resistance-turned-support.

UEMS chart analysis

by Kenanga Research – 25/09/15


The principal activities of the subsidiaries are property development land trading property investment project procurement and management and investment holding.