Technical Pulse: Sembcorp Industries Ltd August 8, 2018

Technical Long

Sembcorp Ind Ltd – Daily timeframe

*Entry Price: 2.81       Stop loss: 2.57      Take profit: 3.00

*Sembcorp Ind Ltd will be added to the Phillip 20 Portfolio once the trade is triggered

Current Sentiment: Bullish

Support 1: 2.61                     Resistance 1: 2.92

Support 2: 2.51                     Resistance 2: 3.00

Price has been stuck in a downtrend since February 2018, and the bearish momentum accelerated after price broke below the 2.92 key support area on 12/06/18. The selling pressure also dragged price down to new 52-week low in July to 2.58.

However, since hitting a new 52-week low on 16/07/18, price has been stuck in a consolidation with 2.72 being the range high and 2.61 being the range low. There seemed to be some bottoming sign with the recent bullish price action. Buyers finally broke price above the 5-week range high of 2.72 on 07/08/18 with increasing volume signals some sign of strength.

Expect price to rebound higher next to test the 2.92 resistance area followed by 3.00. If this bullish breakout was to sustain, the 2.58 July’s low should be the bottom.

 

Note: Our current fundamental view on Sembcorp Ind is a Buy rating with a fair value of $3.70.

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About the author

Profile photo of Jeremy Ng

Jeremy Ng
Research Analyst
Phillip Securities Research Pte Ltd

Jeremy specialises in Technical Analysis and has 10 years of experience in studying price action. His areas of expertise include intermarket analysis on the equities, currencies, commodities and bonds market.

He is also a regular columnist on The Business Times - every Monday ChartPoint column.

He graduated with a Bachelor of Science in Banking and Finance from University of London.

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