Sembcorp Industries Ltd: Uptrend Intact and Strong

CGS-CIMB Research | March 21, 2025

Sembcorp Industries Ltd (SCI) has maintained a strong uptrend, and our technical analysis indicates further bullish potential ahead.

Bullish Breakout and Momentum

SCI has broken out of a larger corrective channel, forming a series of higher highs and lows. The stock has rebounded strongly above the S$5.88 resistance level, which has now turned into support. Additionally, SCI has tested the S$6.34 resistance level for the second time with robust momentum, marking the 123.6% extension of the previous corrective channel.

Positive Technical Indicators

Prices are trending above all Ichimoku indicators, signaling a bullish setup.
MACD and signal line remain elevated above the zero line, with a positive histogram.
Stochastic Oscillator has been rising steadily, indicating strong mid-term momentum.
23-period Rate of Change (ROC) has risen above the zero line.
Directional Movement Index (DMI) is healthy, pointing to strong bullish strength.
Trading volume remains healthy, supporting the uptrend.

Upside Targets

Based on the technical analysis, we have identified the following upside targets for SCI:
Target 1: S$7.15
Target 2: S$7.60
Target 3: S$8.00
Target 4: S$8.80

Recommendation and Valuation

We maintain our Technical Buy recommendation on SCI, with a stop-loss at S$5.49. The uptrend remains intact, and the stock continues to display strong momentum, suggesting further upside potential.