Thursday, October 17, 2013

Potentially Big Turnaround For United Engineers

United Engineers (UE) closed $1.85 on 10 October. The chart of UE shows a possible mid-term positive move in the coming month. With recent market weakness, UE has shown resilience and is still moving up slowly. This could be one of the stocks that we should be holding rather than some empty shell company that recently crashed.
Chart On United Engineers
Since late 2012, UE has been trending down from as high as $2.92 to as low as $1.62, almost a 50 percent discount to its price on the high side. During this downtrend, we noticed that its share price has always been staying below the 50 simple moving average (SMA). But recently we saw that the share price of UE is starting to break above the 10SMA and 50SMA. Accompanying this scenario, we should be seeing a bullish cross over if its share price continues to stay above $1.85 in the next few trading days. This crossover is a good sign for trading as it works extremely well in the past few occurrence. With this signal, a mid-term trader can consider going long on UE with a stop-loss placed below $1.77 where its share price may show weakness again.