Thursday, September 19th, 2024
Market UpdatesSingapore SGX stocks

Sembcorp Industries (SCI SP), Seatrium (STM SP)

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Sembcorp Industries (SCI SP), Seatrium (STM SP)

🏗️ Sembcorp Industries (SCI SP) – Bullish Momentum on Reversal Pattern

Recommendation: Trading BUY
Target Price: S$5.28
Stop Loss: S$4.62
Date of Recommendation: 2nd September 2024
Broker: UOB Kay Hian

Investment Thesis: Sembcorp Industries is showing strong bullish momentum, with the stock forming higher highs and higher lows, indicating a positive trend. The stock has also developed a potential head and shoulder reversal pattern, a classic bullish signal that suggests the stock could see further upside.

  • Technical Indicators: The Moving Average Convergence Divergence (MACD) has turned bullish and is rising, indicating increasing positive momentum. The stock has successfully stayed above its previous support levels and is showing signs of continued upward movement.

Valuation and Financials:
Sembcorp Industries is currently trading at S$4.93, with an upside target price of S$5.28. The potential for the stock to break above this level makes it an attractive trading buy.

Share Price Catalysts:

  • Successful breakout from the head and shoulder reversal pattern.
  • Continued positive performance of technical indicators.
  • Strong market sentiment and increasing volume.

⚓ Seatrium (STM SP) – Rebound from Support Zone

Recommendation: Trading BUY
Target Price: S$1.64
Stop Loss: S$1.43
Date of Recommendation: 2nd September 2024
Broker: UOB Kay Hian

Investment Thesis: Seatrium has rebounded from its previous support zone and is showing signs of recovery. The stock managed to stay above the middle Bollinger band, also known as the 20-day Moving Average (MA), suggesting that the worst may be over and the stock is ready to move higher.

  • Technical Indicators: The MACD is rising towards the zero line, which could increase the chances of the stock price moving higher. This upward momentum, coupled with the stock’s ability to stay above key support levels, makes Seatrium an attractive buy for traders.

Valuation and Financials:
Seatrium is trading at S$1.48, with an upside target price of S$1.64. The stock’s recent rebound and positive technical indicators make it a promising candidate for a short-term trading buy.

Share Price Catalysts:

  • Continued recovery above key support levels.
  • Positive momentum in MACD and other technical indicators.
  • Favorable market conditions and increased investor interest.Thank you