Sembmar – Symmetrical Triangle

Trend: Sideway (Symmetrical triangle), 20ma flat, Macd at 0

Support: 3.79 (200ma), 3.71

Resistance: 3.89 (20 & 50ma), 4.00 (100ma close), 4.09

Observations
Candlestick – Black spinning top with low touching 200ma.
Histogram – 5R. No Bearish divergence is seen.
RSI – At 50%. No Bearish divergence is seen.
Stochastic –Bullish cross soon to be seen. Oversold.
Bollinger Band – In between lower and mid band.

Conclusion:
Having vast similarity with Cosco and NOL, Sembmar is also showing triangle formation behaviour in its recent movement. Will Sembmar break the triangle upwards or downwards?
For the triangle to break upwards, Sembmar must first break 3.89 resistance level with has confluence of 20 & 50ma. If that is successful, it might seek to test the upper trendline. But this does not means that Sembmar will definitely be breaking upwards. To confirm its upward movement, it must break the immediate resistance of 4.00 level to confirm upside movement.
On the other hand, there is also a chance breaking downwards. Currently, it is trading at the lower trendline which confluence with 200ma which is not at 3.79 level. If this level cannot hold, it could mean that the triangle is breaking for the downside. To confirm the downside movement, it must break the next support level of 3.71.
Looking at the current indicators, the indicators still remain bearish but stochastic looks poised for a bullish crossover. Hence, if Sembmar manages to break 20 & 50ma within the next few days, it could trigger a bullish signal. But if it fails to break 3.89 level and instead breaks 3.79 level, the indicators will still remain bearish.
In conclusion, it is hard to determine which way it will breakout for now. But if 3.89 level breaks, there might be chance of it to break upwards. On the other hand, if 3.79 breaks, it means the triangle is breaking downwards.

What to watch out for this week:
1) Breaking of 3.89 level to trigger bullish signals
2) Breaking of 3.79 level with high volume

Trading strategy to adapt right now:
- Long when there is bullish signal is formed after breaking 3.89 level.
- Short when 3.79 level breaks with high volume.

*Disclaimer applies