Union Bank - Chart Analysis

The daily chart of UNIONBANK is shaping up as a classic medium-term reversal setup after finding strong support near the rising 200-day SMA. The stock respected the long-term trend line and formed a higher low structure, which is often an early indication that selling pressure is fading and buyers are gradually regaining control. The recent bounce from the 155–158 zone reinforces the importance of this support area and keeps the broader bullish structure intact. A key positive development is the price reclaiming and closing above multiple short-term moving averages, including the 8 EMA, 33 EMA and 50 EMA cluster. This alignment suggests improving momentum and a shift in short-term trend direction. The narrowing Bollinger Bands after a prolonged correction also hint at a possible volatility expansion phase, which could support a stronger directional move if follow-through buying emerges. RSI has also started recovering from oversold territory and is attempting to move above the median zone, indicating strengthening momentum without entering overheated conditions. This creates room for further upside if broader market sentiment remains supportive. On the upside, immediate resistance is visible around 168–172, followed by a stronger supply zone near 176–180. A decisive breakout above these levels could open the path toward 186 and eventually the previous swing highs near 195–200. On the downside, the 200 SMA region around 155 remains a crucial support. As long as the stock sustains above this zone, dips are likely to attract buying interest rather than trigger deeper weakness. Overall, the chart structure is gradually transitioning from corrective to constructive, and the current setup favors a cautiously bullish outlook with improving probability of trend reversal confirmation in the coming sessions. $UNIONBANK