Sembcorp Industries Ltd (US: U96) downside correction may see some temporary upside relief based on the technicals:   

1. Potential double bottom is looking to break the neckline resistance at $1.92 with a strong Tuesday’s bullish candle, indicating strong momentum. Furthermore, the double bottom is at the support zone.
2. The bullish candle on Tuesday had a snap bullish closure above the Tenkan-Sen and Kijun-Sen.
3. Prices briefly broke above the minor downtrend line. Furthermore, the Fibonacci retracement level at 61.8% of $1.78-$2.23 confluence with the slope resistance of the major downtrend line.
4. Volume has cross above the 20-period moving average

*Expected timeline of the trade is 6 weeks from the date of report issuance.

*The corrective downtrend is still ongoing, any upside is the corrective nature of the bearish downside, hence, risk of further sliding is still on should the neckline resistance at $1.92 fails to break.

CHART LEGEND

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Black line = 26 periods Chikou Span. Lagging line