Sembcorp Industries’ share price - now at $2.16 - bounced off its 50-day moving average at $2.09 on June 17. At the same time, short term indicators have bounced their equilibrium lines suggesting the likelihood of an upmove. Resistance/ breakout stays at the twice-tested $2.21 level. Volume expanded on June 18, but will need to continuously expand if a successful break above $2.21 is to materialise. In this event, an upside of $2.52 is indicated.
Marco Polo’s prices have embarked on an uptrend. Based on the chart pattern, a break above 2.4 cents indicates a potential, possible target of 4.8 cents. The uptrend is likely to be supported by expanding volume, and a turnaround in long term indicators. Improvements in the company’s financial performance are likely to underpin the stock’s technical outlook. In 1HFY2021, for the six months to March 31, 2020, Marco Polo Marine its Ebitda had tripled, and the company had turned in a profit. In addition, 20% of the ship charterer’s fleet is now being deployed in the renewable and sustainable energy sectors.
See also: RHB initiates coverage of Marco Polo Marine with "buy" call and 4.1 cents target price
RH Petrogas’s share price doubled in two trading sessions to 20 cents on June 14. A long white candle on June 15 was followed by a doji, a shooting star and a small black body, suggesting that short term up-momentum is fading and prices may start to consolidate. In the meantime, short term negative divergences have been building. Prices may not better the shadow of the shooting star at 21.5 cents. Support/ breakdown is at 17.5 cents. The stock ended the week at 18.8 cents.
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Although the Straits Times Index - currently at 3,144 - closed marginally off its low, during the past five sessions, the index struggled somewhat in its attempt to hold on to its 50-day moving average, currently at 3,167, but in vain. The 50-day moving average - in turn - is showing signs of turning gradually lower. Still, the mild decline of the 50-day moving average may not be a negative signal given the low volume and declining ADX, which is down to 10. This suggests that the immediate range remains narrow. If the range remains narrow as indicated by ADX, support should appear at the 100-day moving average at 3,092.
Photo Marco Polo Marine
