Sembmar – Is this ship turning into submarine?

Trend: Downtrend , 20ma down, MacD below 0

Support: 4.11, 3.93 (100ma), 3.72 (200ma close)

Resistance: 4.23(20ma & 50ma close), 4.36

Observations:
Candlestick – Small black candle with upper shadow
Histogram –Many G. No bullish divergence is seen.
RSI – At 30% going towards oversold. No bullish divergence is seen.
Stochastic – Bearish crossover. Around 75%.
Bollinger Band – Bounce off mid band.

Conclusion:
After a fantastic run from Sembmar before market showing weakness, Sembmar did not manage to ward off the bearishness of the general market; its trend has now turned into downtrend. Based on the chart, it had yet to form a lower high. Currently, it might have a possibility of forming a lower high as it is trading at a resistance level of 4.23. This resistance level could be a strong level as it confluences with 20ma & 50ma. The candlesticks for the past few days also show signs of its refusal to break 4.23 level. Stochastic is showing bearish signal which reinforces the bearish momentum.

The downside might meet an immediate support at 4.11, but if there is confirmation of the lower high, there could be a high chance that 4.11 will break as it is a minor support level. Hence, the next possible support is at 3.93 which confluences with 100ma. As it is a downtrend, it could break for a possible lower low which can head towards 3.72 where lower low could be formed.

Therefore, if Sembmar trades lower than the support of 4.11, it could means a confirmation of a formation of lower high and its downtrend could continue with a possibility of reaching 3.72 level.

What to watch out for this week:
1) Black candle closing below 4.11

Trading strategy to adapt right now:
- Initiate a short if there is confirmation of support breaking
- For those whom still have long on Sembmar, considerations to clear this position should be high as the next support could be quite far.

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