UMS & Frencken – Breakout Momentum in Motion
Both UMS and Frencken are exhibiting constructive technical structures, suggesting that the semiconductor equipment and precision engineering segments on the SGX may be entering a period of renewed momentum. Classical breakout for both counters, showing early signs of transitioning from re-accumulation into markup phases, supported by improving relative strength and positive momentum shifts.
UMS Holdings (558.SI): Wyckoff Accumulation Breakout
UMS has been tracing out a base structure over the past two months, with evidence of a Wyckoff Re-accumulation pattern. The stock printed its Selling Climax (SC) near S$1.32, followed by an Automatic Rally (AR) to S$1.60 and subsequent Secondary Tests (ST) near S$1.37.
The current rally above the S$1.45–1.50 zone reflects a Sign of Strength (SOS) move, with rising volume and a sharp positive turn in the momentum oscillator (FFI). Relative strength vs the Straits Times Index is also turning higher after a prolonged decline, indicating early sector rotation.
The risk–reward profile is attractive, with ~1:2.5 to Target 1 and ~1:4+ to Target 2. A sustained breakout could mark the transition from Wyckoff Phase D to Phase E, signalling the start of a new markup cycle.
Frencken Group (E28.SI): Base Breakout with Momentum Confirmation
Frencken has likewise broken out of its consolidation base with conviction. The stock rallied sharply above its near-term resistance zone at S$1.46–1.52, accompanied by a surge in volume. This move invalidated its prior downtrend structure and set the stage for a measured recovery toward prior swing highs.
Momentum indicators have turned up decisively, with the FFI rising into positive territory, while relative strength is reversing higher from depressed levels. The price structure resembles a classical breakout continuation, with clearly defined targets and risk parameters.
The breakout is supported by broad-based participation, with increasing volume indicating accumulation. A decisive weekly close above S$1.50 would further strengthen the bullish bias.