Charts tip Sembcorp Industries may head into an uptrend: Phillip Securities

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Charts tip shares of Sembcorp Industries may head into an uptrend after the stock price closed above its recent high, Phillip Securities said on Monday.

“After going through a period of correction since February 2018, price found some support off the S$3.00 psychological round number,” it said in a note. “The S$3.00 psychological round number was tested on two separate occasions in May and April with the bulls winning the fight, showing some early sign of strength.”

That has sent the stock price into consolidation since March, with S$3.00 as the bottom of the range and S$3.18 at the top, Phillip Securities said, but added that the range high was broken last week.

“The recent price action signals a possible move back into the uptrend again after price broke and closed significantly above the S$3.18 range high and 20, 60 day moving average,” it said.

It tipped the stock to head higher to test the S$3.38 resistance area next, followed by S$3.60, and support at S$3.00, followed by S$2.97.

Phillip Securities said the entry price was at S$3.27, with a stop loss at S$2.97 and a take profit price at S$3.60.

It noted its fundamental analysis set an Accumulate call, with a S$3.86 fair value.

The stock ended Monday down 0.62 percent at S$3.22.