Date of Report: 08 October 2024
Broker Name: Lim & Tan Securities
Technical Analysis and Price Forecast
As of 08 October 2024, the price direction for Sembcorp Industries Limited is forecasted to be bullish in the short term. The report recommends a BUY based on technical analysis, reflecting the company’s positive momentum over the past weeks.
Recent Performance
- Since the previous technical report on 18 September 2024, Sembcorp Industries’ share price has rallied by over 4.2%.
- This rise was anticipated based on the earlier outlook, which noted positive momentum and a bullish price trend.
Technical Indicators
- MACD Chart: The Moving Average Convergence Divergence (MACD) chart has been emitting a positive signal for Sembcorp Industries. A bullish crossover occurred when the MACD line cut above the signal line in late July 2024, further supporting the positive outlook.
- Relative Strength Index (RSI): The RSI is trading at 65, which is below the overbought level of 70. This suggests that there is still room for the stock to appreciate before encountering resistance.
Price Targets
- Short-Term Outlook: The share price is expected to face resistance at S$5.78, which aligns with the trend high recorded on 14 August 2023.
- Support Level: Should momentum turn negative, there is support at S$5.37, marked by the daily low on 23 September 2024.
- Medium-Term Resistance: For the medium term, the resistance level is projected at S$6.00, while support is at S$5.17.
- Long-Term Projections: Over the long term, the resistance could rise to S$6.40, with support at S$5.00.
Market Sentiment
- The overall sentiment for Sembcorp Industries is bullish in both the short and long term, with the medium term showing a sideways trend. The current share price last stood at S$5.49.
Chart Analysis
- The daily chart since February 2024 reflects the bullish momentum in the short term.
- The weekly chart since 2015 indicates a sideways movement in the medium term.
- The monthly chart since 2010 presents a bullish outlook for the long term.
This comprehensive analysis reflects the strong technical indicators supporting Sembcorp Industries’ stock performance, with positive signals across multiple timeframes.
