Sunday, September 30, 2018


Dear readers, are you a fan of technical charts? Do you believe in technical signals of stocks? If you do, then this post would be of interest to you. For a technical signal has just indicated that a stock listed on SGX is poised for a breakout rally!
The technical indicator which we are talking about here is the moving-days-average. Or 200-days-moving-average to be exact. Technical chartist believe that when stock prices break below the 200-days-moving-average, then this stock would be in for a long-term downtrend. Conversely, when the stock price of a stock breaks above the 200-days-moving-average from low then this stock would be in for a long-term rally.
Sembcorp Marine stock has rallied by about 25% from $1.68 per share in August 2018 to the current $2.04. At this current juncture, Sembcorp Marine stock has just crossed above its 200-days-moving-average from its lowest price. The previous time Sembcorp Marine stock crossed over its 200-days-moving-average, about a year ago in Sep 2017, the stock price rallied from some $1.60+ per share to a peak of more than $2.70 per share before languishing.

Will Sembcorp Marine stock, at this current juncture of crossing over its 200-days-moving-average, again follows history and continues to make new highs? Will the expected rally of oil prices help Sembcorp Marine stock achieve this rally? And will the oft-cited potential privatization of Sembcorp Marine again excites investors to continue pushing this stock to new highs?

My personal take on Sembcorp Marine stock is that investors who would like to initiate a position in this stock must be one with holding power as notwithstanding technical charts, expected oil prices rally and potential privatization, the fundamentals of Sembcorp Marine are not very solid. However, Sembcorp Marine stock is one stock which I would not mind to have in my portfolio (this is the furthest clue as to whether I have this stock in my portfolio to readers) since I expect there is still some potential in oil prices going upward and I am a believer that one day, the offshore and marine sector in Singapore would be consolidated. I would think Sembcorp Marine would be privatized so that Sembcorp Industries would become a pure play on utilities and urban solutions. Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.

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