Sembcorp Marine Ltd – Daily timeframe (Update from 23 Sept 16)
Current Sentiment: Bearish
Support 1: 1.240 Resistance 1: 1.365
Support 2: 1.215 Resistance 2: 1.400
Price remains depressed even as it continues to correct after the last update instead. The correction was perfectly rejected by the 60 day moving average once again, keeping the downtrend intact.
As a result, price succeeded in breaking below the pullback line with increasing volume and 20 day moving average on 26/10/16 suggests a high likelihood of price heading back into the downtrend.
Expect price to head lower next to test the 1.240 support area followed by 1.215.
Note: Our current fundamental view on Sembcorp Marine is a Reduce rating with a fair value of $1.140
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