Previously, UEM Land Holdings has confirmed an inverted 'Head and Shoulders' pattern with a neckline breakout accompanied by increased volume. As the pattern unfolded, the share price broke upwards before forming a short term congestion  zone at  the RM2.05  level. The price eventually managed to penetrate the resistance level at RM2.08 with a cross of the 20-day SMA over the 50-day SMA in the process. With the completion of the Head and Shoulders pattern as well as the golden crossover, the technical picture is fast improving and could indicate a reversal of its medium  term downtrend. The next level of resistance  is  now  within  view  at  RM2.12  and  subsequently,  the support-turned-resistance level of  RM2.15. Support in the meantime can be found just north of the 20 and 50-day SMA at RM2.00.

On the weekly chart, the share price has formed a large symmetrical triangle trading range. As the support and resistance lines converge towards the apex, a rounding top was also formed as investors locked in gains after a decent rally (since September). That said, despite this being generally a bearish pattern, it was however formed amid declining volume, which hence still supports our now positive view of the stock. With the price action  now inching higher, UEM Land may look to retest the RM2.08 resistance. A convincing close above this level would indicate further gains towards the recent high of RM2.48, and subsequently RM2.80. Support is likely to be provided at RM1.90/95.

Source: Kenanga