United Micro Electronics has recently launched an innovative line of miniaturised, yet economical 5G chips, aiming to penetrate various markets including Internet of Things (IoT) devices, consumer electronics, automotive sectors, and data centres. This initiative is founded on UMC's novel RFSOI (Radio Frequency Silicon on Insulator) platform.
The new chip...
NYSE:UMC
Possible Scenario: LONG
Evidence: Price Action
Call options, Strike 12.5$, 06/18/21
I see 2 different scenarios:
a- it hits the target Monday. then the position will be close
b- it will fall to buy-zone and then after consolidation for some days, it will goes to price targets, I prefer this one, because I can build up my position,
I'll open Tier 1...
You can see from my projection I am expecting price to move over the $2 mark. Look for the MACD to turn. There is Divergence on the MACD and RSI. it looks like it had finished a Inverted Head and Shoulders Pattern around Feb. follow the Volume. Looks like this could be the end cycle that would finish the shoulder on another.
I'm seeing a nice long position for UMC developing.
Technicals:
- RSI in pennant in the oversold region.
- Price forming a falling wedge, falling into the support of the inverted cup long term support.
T1 Jun15-Aug15: 2.38
T2 Jun15-Dec15: 2.60
