Technical Pulse: SembCorp Industries Ltd February 18, 2021 496

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:

 

  1. 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.
  2. 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.
  3. The (B) wave is potentially a bearish flag and hence, there is a strong indication of a further sell-down.
  4. 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.
  5. 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

 

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