Sembcorp Industries (HKEX: U96) Upside has come to a halt after prices fails to sustain the rally above $1.80. Based on the wave analysis and technical, the stock is heading for another fresh round of bearish correction:
- The 5-wave minor phase has completed after the strong wave (3) extension follow by a truncated wave (5). As such, the corrective wave (A) has just begun.
- After prices broke the trendline and formed wave (4), the stock attempted a throwback up for wave (5) but prices fails to close higher. Therefore, the bear strikes back with a vengeance.
- The (B) wave is potentially a bearish flag and hence, there is a strong indication of a further sell-down.
- Ichimoku has completed its “Three bearish death cross” signal after the recent candle breaks below the kumo/cloud. Also, the bearish kumo twist further cement the bearish signals.
- Wave (C) target is at 161.8% and 200.0% extension level of wave (A). Which the 200.0% extension potentially interceted with the primary trendlines.
*Timeline of the trade is 4 weeks from the date issued.
CHART LEGENDS
Ichimoku Kinko Hyo
Red dotted line = 9 Periods Tenkan-Sen
Blue dotted line = 26 periods Kijun-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