Sembcorp broke above the 1 week high of 4.24 on 3rd of April 2008. Volume was high and it reached a high of 4.43 intraday (hitting the 50 day moving average) before retracing to close at 4.24. 4 April close was 4.29 on lower volume.
From what I understand when stock prices are on a downtrend and hit the 50 day moving average from below, they tend to bounce off quite strongly more often than not. Unless there is very strong sentiment, the 50 day MA usually holds.
This can be seen in the decline in February after prices cut above the 50 day MA, look at the drop!
At the moment it seems that the USA might be in a recession. However the US markets have held firm. Psychologically investors are still bullish.
How Sembcorp cuts the 50 day MA would be something to look out for. Correlate with general market sentiments and movements.
Looking at the fibonacci retracement levels, 4.65 is the 61.8% level and a move beyond that to 4.71 (gap cover) is possible if market conditions are very bullish.
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