SembMar - Triple Bearish Engulfing

Regional market indices (STI, HSI and Nikkei) have been showing bearish divergences after a strong run-up. The only exception is China, but even the SSEC is beginning to show some weaknesses of late. Of particular mention is the Dow Jones which has just cut back below its 200 days simple moving average. This signal is a widely followed indicator in which mostconventional fund managers and institutions use to determine the main trend, thus basing a major part of their trading decisions on it.

In line with general market weakness, SembMar created 3 bearish engulfing patterns in the month of June, the first of which happened on the SAME day UOB KH Research called for 'showtime'. This also coincides with its price topping out at $3.16 after a 3 months rally. Ever since 'showtime' began, SembMar has been in perpetual downtime mode, creating 2 more bearish engulfers in the process.

Baring the end of 'showtime', you may try shorting SembMar at $2.60+ using your SBL account with me. Downside target is identified at $2.45 and further towards $2.23 if the former does not hold up. Resistances are at $2.72 and $2.83, hence stop-loss can be placed at either prices.

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