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Saturday, October 5, 2013

Long Candidate: UOB

UOB - Long
Entry - 19.8-20.0
Stop - 19.3
Target - 21.78

UOB has been in trading range since May 2013, the stock close near the low of the range setting up the possibility of a long entry between 19.8 and 20.0. while its 200 daily moving average is at 20.0, which could support a major support. If the stock reverses off this level while the broad market regains its bullish footing, there wouldn't be much in the way of technical resistance to stop price from returning to prior highs. With a stop placed 1.5X one daily average true range measure below the entry range, this setup has an approximate reward to risk ratio of 3.56 to 1.00.


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