Saturday, March 22, 2014

ShareInv Article: Will Sembcorp Continue To Trade Range-Bound?

Sembcorp Industries (Sembcorp) gaped down this morning as the Straits Times Index (STI) opened lower. Currently, it is trading at $5.14. I observed that Sembcorp has been trading in the range-bound zone between $5.15 and $5.50 since October last year.
Chart On Sembcorp Industries
On the technical view of this stock, if Sembcorp continues to trade below the 200-day moving average for the next 2 weeks, it is going into a long-term bearish trend. However if the side-way trend continues, we might see Sembcorp rebound from the current level (as indicated by the bottom of box).
We know that there are many investors who are planning to go long on this blue chip stock while it is cheap. One of the signs of its share price turning up will be when the share price crosses above the $5.20 level. At that level, it will be a safer way to catch the bottom when we see that the price turns up slightly. On the other hand, do watch out for the $5.08 level; Sembcorp might go lower if its share price falls below this support level.