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

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

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.

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.