April 17, 2024

Sembcorp Ind: Selling down to critical support. Can this hold too? Price 2.05.

Author: Trading Impossible | Joey Choy
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Just about a month back, we saw Sembcorp Ind approaching the 2.50 resistance level that it has been trading below since May…

There were huge sellers there and it rejected that level again with some bearish price action

The trend was also down from the mid to long term indicators and hence..

We were expecting more downside towards the 2.30 level

See what I mean…

Indeed the selling continued after that bearish actions where it rejected the 2.50 with it selling all the way down..

Even our 1st target at 2.30 gave way too..

But some good support came back at 2.20 where it hovered above for about 2weeks..

The trend was still firmly down and a further breakdown was possible too and we reiterated our targets last week as seen below…

To 2.00, the psychological level that is key..

This week, the 2.20 broke down on more market weakness and sellers returned fast..

We are now approaching the 2.00 critical support where there are some short covering which is normal given the sell down we have seen over the past month..

We may start to consolidate above 2.00 for now for a breather but would want to be careful if this support will to break down again where targets can be revised even lower…

See what I mean below,

More for taking shorts to ride any potential weakness rather than just holding on to long positions all the way down imo…

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