Just about 2 weeks back, we saw Sembcorp Ind approaching the CRITICAL 2.00 support dangerously…
We have been holding above this support for more than 10 years since 2008 so any price actions here would be meaningful to see if sellers were ready to push it lower…
From trend indicators, there were already some signs of weakness since the beginning of last year…
And also prices has always been capped below the downward sloping channel resistance line as seen…
SO pretty much in a downtrend in the mid to long term..
On some bearish price actions spotted on 24th Feb 2020, some downside target were drawn as seen… first target to 1.80 first…
See what I mean below…
Just last week, we saw more selling and target at 1.80 has been hit!
There were some short covering above 1.80 for a few days but the selling was not over imo…
Trend was still pretty much down and on further market weakness this counter can still break the 1.80 to push lower…
Downside target were revised even lower as such to 1.60 last week as seen below..
We were awaiting the impending breakdown of the 1.80 temp support too and it happened last Friday….
See target revised lower again as it happened… not a good signal…
Selling came in fast and down it went towards our revised target at 1.60 over the past few days…
There is some bargain hunting retuning near 1.60 for now which is normal given the sell down we have seen over the past month…
More than 16% sell down from when we first covered this with downside targets.
Fast forward to today, we are seeing some support at 1.60 still.. with a technical rebound towards 1.70 immediate resistance..
Sellers still seems to be coming out as it near 1.70 so the downtrend can still be intact below 1.70 now..
If we spot more bearish price actions below 1.60 support, would want to be cautious of more selling where target can be revised lower as seen… to 1.50 or maybe even 1.40….
More for CFD Shorts where we can ride the weakness further rather then just hold on to long positions blindly….
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