Broker: Lim & Tan Securities
Date of Report: 25 July 2025

Sembcorp Industries: Bullish Technical Outlook Signals Short-Term Upside Potential

Introduction: Positive Technical Momentum for Sembcorp Industries

Sembcorp Industries has emerged as a standout performer, displaying robust technical momentum that has caught the attention of investors and market watchers. This comprehensive analysis delves into the recent price action, technical indicators, and support-resistance dynamics to provide a clear, actionable perspective for those tracking Sembcorp Industries.

Short-Term Bullish Signal Backed by Technical Indicators

Sembcorp Industries has experienced a remarkable surge of approximately 11.3% since the previous technical commentary on 1 July 2025. This uptick has been driven by strong positive momentum, aligning with earlier forecasts that projected further gains for the stock.

• Bollinger Bands: Both the upper and lower Bollinger Bands are currently trending upwards. This dynamic is a classic indication of a bullish trend, suggesting that Sembcorp Industries is poised for additional upside in the near term.
• MACD (Moving Average Convergence Divergence): The MACD chart provides further validation of bullish sentiment. A significant bullish crossover occurred earlier this month, when the MACD line crossed above the signal line, reinforcing expectations for upward price movement.

Key Short-Term Resistance and Support Levels

Investors should closely monitor the following critical technical levels:

• Short-Term Resistance: Upside for Sembcorp Industries may be capped at the S\$8.09 level, coinciding with the current position of the upper Bollinger Band.
• Short-Term Support: Should momentum turn negative, the S\$7.55 mark—corresponding to the trend low observed on 15 July 2025—could act as a near-term floor and limit further downside.

Medium-Term Outlook: Sideways Consolidation Expected

While the short-term trend is clearly bullish, the medium-term technical outlook for Sembcorp Industries suggests a period of sideways movement. This is supported by weekly chart analysis, which highlights the following levels:

• Resistance: S\$8.30
• Support: S\$7.35

This range-bound scenario indicates that, while the stock may face some consolidation, major breakdowns or breakouts are unlikely without a decisive move beyond these technical thresholds.

Long-Term Perspective: Underlying Bullishness Remains Intact

The long-term technical picture for Sembcorp Industries remains robustly bullish. Monthly chart analysis since 2010 highlights a continuing upward trend for the stock, with the following key levels:

• Resistance: S\$8.80
• Support: S\$7.10

This long-term uptrend provides reassurance for investors with a multi-year horizon, suggesting that any short-term volatility is likely to be within the context of a larger upward movement.

Summary Table: Technical Outlook for Sembcorp Industries

Conclusion: Technical Buy Recommendation Backed by Solid Indicators

Sembcorp Industries is currently exhibiting strong technical signals that support a bullish short-term outlook, with the potential for further gains up to the S\$8.09 resistance level. The positive momentum seen in both the Bollinger Bands and MACD provides a compelling case for a tactical buy. Medium-term investors should anticipate sideways movement, while long-term holders can take comfort in the underlying bullish structure.

Investors are encouraged to monitor key support and resistance levels closely and to consider their individual investment objectives and risk tolerances when making trading decisions.

Important Disclaimers

This analysis is intended for general informational purposes only and does not account for individual investment goals or circumstances. Investors should conduct their own research and consult with a financial adviser before making any investment decisions. The information provided reflects the views and analysis of Lim & Tan Securities as of the date of the report and is subject to change without notice.