Sembcorp Industries: Bullish Short-Term Outlook with Upside Potential
Lim & Tan Securities | 10 March 2025
According to the technical analysis report by Lim & Tan Securities, the share price of Sembcorp Industries Ltd. is forecasted to be bullish in the short-term, with a recommendation to BUY the stock.
Short-Term Outlook: Bullish
1 The report highlights that the share price of Sembcorp Industries had jumped by around 15.4% since the previous technical charting report written on 17-Feb-25, when the prevailing trend had turned positive as momentum was no longer bearish.
The Relative Strength Index (RSI) is currently at 64, indicating that there is still room for further appreciation before the stock reaches overbought territory and experiences a pullback. 1 Additionally, the MACD chart is emitting a positive signal for the share price, with the MACD line cutting above the signal line from below during mid-Feb-25, signaling a bullish crossover.
For the near-term, the report sees the share price upside for Sembcorp Industries being capped at the $6.50 resistance mark, as this is where the next psychological price barrier is located. 1 However, should the price momentum turn negative, support at the $6.09 level, as outlined by the daily low on 03-Mar-25, could serve to limit any further downside in the short-term.
Medium-Term Outlook: Sideways
2 Looking at the weekly chart, the report suggests that Sembcorp Industries is in a sideways trend in the medium-term, with a resistance level at $6.70 and a support level at $5.90.
Long-Term Outlook: Bullish
3 The monthly chart analysis indicates that Sembcorp Industries is in a bullish trend in the long-term, with a resistance level at $7.15 and a support level at $5.72.
In conclusion, the Lim & Tan Securities report recommends a BUY for Sembcorp Industries based on the bullish short-term outlook, with the potential for the share price to reach the $6.50 resistance level in the near-term. Investors should monitor the stock’s performance and be prepared for potential volatility in the medium-term, while the long-term trend remains bullish.
