Tuesday, November 5th, 2024

Sembcorp Industries Stock Analysis: Bullish Short-Term Outlook with 5.38 SGD Price Target






Sembcorp Industries Limited: Comprehensive Analysis and Forecast

Sembcorp Industries Limited: Comprehensive Analysis and Forecast

Broker Name: Lim & Tan Securities

Date: November 4, 2024

Introduction

Sembcorp Industries Limited, a significant player in the energy and urban development sectors, has exhibited interesting price movements and trends recently. This detailed analysis delves into the technical aspects and provides a comprehensive forecast based on current market conditions.

Short-Term Bullish Outlook

Sembcorp Industries’ share price direction is forecasted to be bullish for the next one to two weeks. After experiencing a 4.5% decrease in its share price over the year, the current price trend suggests that a trend reversal is forthcoming. The momentum is no longer bearish, indicating a potential upward movement.

Notably, Sembcorp Industries’ price action has commenced the formation of a Double Top pattern since mid-September 2024. This pattern points to a possible upward trend as it is currently carving out the left-hand side of the right Top. The Relative Strength Index (RSI) is trading at 36, well below the overbought territory of 70, suggesting room for further appreciation before a pullback occurs.

In the near term, the share price upside is capped at the \$5.38 resistance mark, corresponding to the daily high on October 25, 2024. Conversely, if price momentum turns negative, the \$4.91 level, identified as the trend low on September 10, 2024, could provide support and limit further downside in the short term.

Technical Analysis

Sembcorp Industries - Daily Chart Since Jul-24
Sembcorp Industries – Daily Chart Since Jul-24

Based on the daily chart analysis since July 2024, Sembcorp Industries shows a bullish trend in the short term. The last done price is \$5.07, with resistance at \$5.38 and support at \$4.91.

Medium-Term Sideways Movement

In the medium term, Sembcorp Industries is expected to exhibit a sideways movement. The resistance level is set at \$5.55, while the support level is \$4.75.

Long-Term Bullish Outlook

Looking ahead to the long term, the outlook for Sembcorp Industries remains bullish. The resistance level is anticipated to be at \$6.00, with support at \$4.55.

Exhibit Analysis

Sembcorp Industries - Weekly Chart Since 2015
Sembcorp Industries – Weekly Chart Since 2015

The weekly chart since 2015 indicates a sideways trend in the medium term. This movement suggests a consolidation phase, where the stock price oscillates within a defined range, providing opportunities for traders to capitalize on both upward and downward price movements.

Sembcorp Industries - Monthly Chart Since 2010
Sembcorp Industries – Monthly Chart Since 2010

The monthly chart since 2010 showcases a bullish trend in the long term. This sustained upward movement highlights the company’s potential for growth and resilience in the market over an extended period.

Conclusion

Sembcorp Industries Limited presents a promising investment opportunity with a bullish outlook in the short term, a sideways trend in the medium term, and a long-term bullish trend. Investors should monitor the key resistance and support levels and consider the company’s overall market position and potential for growth.


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