Sembcorp Industries: A Comprehensive Technical Analysis

Report by Lim & Tan Securities, dated 21 November 2024

Introduction

The Singapore Research Team at Lim & Tan Securities has released an in-depth technical analysis of Sembcorp Industries Limited, predicting a bullish trend in the short term. This comprehensive report provides investors with key insights into the stock’s performance, technical indicators, and potential investment opportunities.

Short-Term Bullish Trend

Sembcorp Industries is currently exhibiting a bullish price direction forecasted to persist for the next one to two weeks. The report emphasizes a 3.1% appreciation in the company’s share price since the last technical charting report on 4 November 2024. The upward movement is within a Double Top pattern, which has been forming since mid-September 2024.

Technical Indicators Signal Positivity

A significant technical indicator, the MACD chart, is emitting a positive signal for Sembcorp Industries’ share price. The bullish crossover, evidenced when the MACD line surpassed the signal line earlier this week, reinforces the short-term bullish outlook. This is visually represented in the report’s Exhibit 1.

Double Top Pattern Analysis

The stock’s price action continues to develop the Double Top pattern, with an immediate directional trend pointing north. Investors should note that the stock is in the process of carving out the left-hand side of the right Top, as depicted by dotted purple lines in the report.

Resistance and Support Levels

In the near term, the report identifies a share price upside capped at the \$5.55 resistance level, correlating with the trend high on 21 October 2024. Conversely, should the price momentum turn negative, support at the \$5.06 level, marked by the daily low on 19 November 2024, may limit further downside risks.

Outlook Across Timeframes

The report provides a detailed analysis of Sembcorp Industries’ performance across different timeframes:

• Short-Term: The last recorded price is S\$5.23, with resistance at S\$5.55 and support at S\$5.06.
• Medium-Term: The trend is sideways, with resistance at S\$5.73 and support at S\$4.88, as illustrated in Exhibit 2.
• Long-Term: A bullish perspective is maintained, with resistance at S\$6.15 and support at S\$4.70, as depicted in Exhibit 3.

Conclusion

The analysis by Lim & Tan Securities provides a robust recommendation to buy Sembcorp Industries shares based on the technical indicators and patterns observed. Investors are encouraged to consider these insights while making informed investment decisions. This report serves as a valuable tool for those looking to capitalize on potential market movements in the short, medium, and long term.