Technical Analysis – UBS stock to remain under pressure after disappointing earnings results
January 22, 2019 12:26 pm
UBS Swiss Bank missed analysts’ earnings estimates on Tuesday, sending its stock price below the 200-period simple moving average (MA) on the four-hour chart and straight down to one-week lows. Technically the short-term bias looks neutral to negative according to momentum indicators; the RSI seems to be flattening below its 50-neutral threshold, while the MACD keeps weakening towards zero and below its red signal line.
A leg lower could touch the 50-period MA currently at 12.71 where any violation could set the stage for more selling, probably towards the 12.30-12.15 area. Moving lower, the bears will likely come in front of a taller wall within the 11.65 and 11.57 boundaries which remain unbreakable since 2012.
In the positive scenario, the stock price could find a barrier around the 20-period MA currently at 13.12 as the line seemed to be more restrictive earlier this month. Slightly higher, a jump above 13.30 and the 200-period MA would bring more buyers into the market, while a decisive close above the 13.52 peak and more importantly above 13.90 (50% Fibonacci of the long sell-off from 16.10 to 11.65) would confirm the sustainability of the recent rebound.
UBS Swiss Bank missed analysts’ earnings estimates on Tuesday, sending its stock price below the 200-period simple moving average (MA) on the four-hour chart and straight down to one-week lows. Technically the short-term bias looks neutral to negative according to momentum indicators; the RSI seems to be flattening below its 50-neutral threshold, while the MACD keeps weakening towards zero and below its red signal line.
A leg lower could touch the 50-period MA currently at 12.71 where any violation could set the stage for more selling, probably towards the 12.30-12.15 area. Moving lower, the bears will likely come in front of a taller wall within the 11.65 and 11.57 boundaries which remain unbreakable since 2012.
In the positive scenario, the stock price could find a barrier around the 20-period MA currently at 13.12 as the line seemed to be more restrictive earlier this month. Slightly higher, a jump above 13.30 and the 200-period MA would bring more buyers into the market, while a decisive close above the 13.52 peak and more importantly above 13.90 (50% Fibonacci of the long sell-off from 16.10 to 11.65) would confirm the sustainability of the recent rebound.
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