The recent rally in the benchmarked STI was led by the banking sectors as the banking stocks broke above their August 2009 high. The best performer among them was UOB.  The stock had breached above its former $17.70 stiff resistance now turned support. The 20 and 50-day moving averages had started to turn up and the MACD is trending up above its centerline. Thus all these positive technical configurations suggest that UOB has resumed its uptrend. Be on the lookout for its next possible target at $20.00 and a break above it may see a further push towards the next stronger resistance at $21.50

But do take note of the Stochastic oscillator as it is now above the 80% overbought level which suggests that UOB may face the risk of a short-term pull-back. Immediate support at the $18.00-$17.70 zone shall hold but a violation below it may negate the bullish tone to see a slide towards the next support at $16.42