Lim & Tan Securities April 15, 2025
Sembcorp Industries LTD: Short-Term Bullish Outlook
Sembcorp Industries LTD has been forecasted to have a bullish price direction for the next one to two weeks in the short-term. Based on technical analysis, we recommend a BUY for the stock.
Short-Term Analysis
Although the share price of Sembcorp Industries had rebounded by more than 6.5% since hitting its recent trough of $5.74 earlier this month, we believe that additional gains could still be forthcoming given that the current momentum remains positive.
Key points:
The share price has rebounded by over 6.5% since its recent trough of $5.74.
Current momentum remains positive, indicating potential for further growth.
Technical Indicators
The price action of Sembcorp Industries appears to be moving within an Ascending Channel pattern that commenced since December 24. This pattern is defined by two parallel upward-sloping lines, which implies a bullish signal.
The Relative Strength Index (RSI) is presently below 70 and is trading at 49, indicating that there is much room left for further appreciation before the underlying security reaches overbought territory and experiences a pullback.
Near-Term Outlook
For the near-term, we see the share price upside for Sembcorp Industries being capped at the $6.43 resistance mark, given that this is where the trend high on April 10, 2025, is located for the stock.
On the other hand, should price momentum of Sembcorp Industries turn negative, support at the $5.97 level could serve to limit any further downside in the short-term.
Medium- and Long-Term Outlook
In the medium term, the stock is expected to trade sideways, with a resistance level of $6.62 and a support level of $5.80.
In the long term, the stock is expected to perform bullishly, with a resistance level of $7.00 and a support level of $5.65.
Exhibits
The following exhibits provide a visual representation of the technical analysis:
Exhibit 1: Sembcorp Industries – Daily Chart Since Nov 2024 (Bullish In The Short-Term)
Last done: S$6.12
Resistance: S$6.43
Support: S$5.97
Exhibit 2: Sembcorp Industries – Weekly Chart Since 2015 (Sideways In The Medium-Term)
Exhibit 3: Sembcorp Industries – Monthly Chart Since 2010 (Bullish In The Long-Term)
Summary of Recommendations
Short-Term: BULLISH
Last done: S$6.12
Resistance: S$6.43
Support: S$5.7
Medium-Term: SIDEWAYS
Resistance: S$6.62
Support: S$5.80
Long-Term: BULLISH
Resistance: S$7.00
Support: S$5.65
Key Levels to Watch
Resistance Levels:
Short-term: $6.43
Medium-term: $6.62
Long-term: $7.00
Support Levels:
Short-term: $5.97
Medium-term: $5.80
Long-term: $5.65