UOL

Chart 1:

Chart 2:

Anticipation of goodies to be handled out in Singapore's budget and US incoming president-elect Mr Barack Obama crowning have certainly given STI a good run in recent time. UOL did its fair share of price escalation but as expected, it rose just enough to meet its strong resistance at its long term downtrend line before toppling over. (Refer to Chart 1)

Taking a closer look at its shorter term action (refer to Chart 2), UOL annouced its intention to takeover UIC today and the market reacted negatively (Its not difficult to understand why). The volume registered today can be considered as high especially if one takes into account the trading halt for bulk of the session today.

Personal Opinion:

Technically, price action broke down from its rising trendline support. Price is likely to face further downward pressure. If 2.05 fails (which is the MA50 support). We could see price heading down towards the next whole number support at $2. Once that fail, price could continue to fall further with next support likely to be $1.90-$1.92. Bearish