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Technical Analysis: United Hampshire US REIT

The chart for $UtdHampshReitUSD(ODBU.SI)$ (denominated in USD) shows a multi-year symmetrical triangle formation spanning from early 2022 through August 2025. This pattern is characterized by converging trendlines: a descending upper resistance line and an ascending lower support line, both evident from the major high and low points on the chart.

Key Observations

• Symmetrical Triangle: This classic consolidation pattern typically precedes a strong move, but the direction—up or down—is confirmed only by a breakout.

• Breakout Signal: Recently, the price pierced above the upper trendline, suggesting a potential bullish breakout. This is apparent by the sharp green candlestick just past the triangle’s apex, labeled “Breakout?” on the chart. Such a move, especially on elevated volume (volume not fully visible here, but implied by the price spike), is a positive momentum indicator.

• Moving Averages: Multiple short- and long-term moving averages (MA) are displayed, and the price breakout coincides with the price crossing above these MAs. Notably, the 200-day MA (green line) has been flatlined for several months, indicating reduced directional bias, but a sustained move above could signal trend reversal.

• Prior Downtrend: The stock experienced a significant downtrend in 2022, followed by a flattening and sideways consolidation since late 2023. The triangle’s apex coincided with this area of support and resistance compression.

• Caution: While a breakout from a symmetrical triangle often signals the start of a new trend, false breakouts are common. It’s important to watch for sustained closes above the breakout level and confirmation through higher trading volumes. Should the price retreat back inside the triangle, the bullish thesis would be negated.

Conclusion

A technical breakout is underway, suggesting the potential for further gains if sustained. However, confirmation is needed through continued price action and volume before establishing a long-term bullish bias. Downside risk remains if the breakout fails and the price slips back below the support line.

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