UOA Development's ('UOA') share price has been trending upwards since  it  made  its  lows  in  October.  With  the  amount  of  news  flow surrounding the stock, its price action has been relatively volatile in recent months, completing large price swings within a 2-3 week cycles. For instance, UOA saw its share price spiked up 14 sen yesterday after a local research house raised its earnings forecasts for the stock amid stronger-than-expected new sales. 

Technically speaking, the share price has effectively broken above its congestion zone at RM1.66. The strong move yesterday saw an upward breach of the Bollinger  Bands, resulting in an outward expansion of the band coupled with high volumes. The RSI has also hooked up without entering the overbought level, possibly indicating a further upside potential. On the weekly chart, UOA has managed to close above the channel resistance (RM1.66) formed since the start of the year. Subsequent to this breakout, this resistance level has now turned support with an upside measurement target of 22 sen to RM1.88. With the impressive move recorded yesterday, we do not rule out the possibility of the share price returning to this new found support level in a typical return move after a strong breakout. A return to or near this level would offer a second chance to buy into the stock.