UMC rallied out of the 3-month base (05 Aug-21 Oct) to reach 2.36 (27 Oct high) before consolidation took hold. The recent 13-day range has taken shape of a symmetrical triangle (joining 2.36/2.29 highs/2.07/2.14 lows). A break above 2.25 (Resistance 1) would confirm the breakout of the triangle consolidation and initiate the next upleg towards the 2.29/2.36 resistance zone (Resistance 2). Clearance above would offer scope for 2.54 (Resistance 3).
However, if bulls fail to sustain gains above the bear trendline (off the 2.36/2.29 highs), a downside reversal below 2.14 (Support 1) would dampen the bullish outlook and re-open the key 2.07 support (Support 2). A breakdown there would suggest near-term topping and shift focus lower towards 1.84 which guards the 1.77 YTD low (Support 3).
Trading Indication:
Short-term (or Intraday): Buy at 2.18 or lower;
Target at 2.36 and higher;
Stop Loss at 2.14 (2.0%)
Long-term: Possibly sell higher
However, if bulls fail to sustain gains above the bear trendline (off the 2.36/2.29 highs), a downside reversal below 2.14 (Support 1) would dampen the bullish outlook and re-open the key 2.07 support (Support 2). A breakdown there would suggest near-term topping and shift focus lower towards 1.84 which guards the 1.77 YTD low (Support 3).
Trading Indication:
Short-term (or Intraday): Buy at 2.18 or lower;
Target at 2.36 and higher;
Stop Loss at 2.14 (2.0%)
Long-term: Possibly sell higher
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