The Straits Times Index ended the week (Mar 8-12) at 3,095, up 82 points week-on-week, but below its intra-week high. In the short term, the index may move sideways as short term stochastics eases from the top end of its range.
United Industrial Corp, better known as UIC, has experienced an improvement in its technical indicators. Short term indicators are rising, and quarterly momentum is resilient and appears poised for an upmove. Prices have moved above the 50- and 100-day moving averages at $2.34 and $2.32 respectively. Resistance is at the thrice-tested $2.45 level, and support is at the 50- and 100-day moving averages. A successful breakout of $2.45 indicates a target of $2.90. Since annual momentum is turning up, a breakout is a possibility. Volume is usually required for a breakout, but the free float of UIC is very low, of less than 13%.
