Image source: company website
Last night in the US markets, the Oil & Gas Exploration and Production ETF (XOP) was particularly strong, jumping 2.48%.
Meanwhile closer to home, Seatrium's (formerly known as SembCorp Marine) share price had been consolidating into an Ascending Triangle formation since March this year, with the breakout line at $0.133. Volume analysis had suggested likelihood of accumulation and there's been signs of buying interest from institutional funds recently.
Price action today had shown it is attempting to break out of the Triangle. Once it does so with high volume (i.e. an authoritative breakout), the pattern-implied target can be set at $0.165 based on Classical Technical Analysis.
From the chart, next resistance and support levels to look out for are $0.15 and sloping line of ascending triangle respectively. Look to XOP ETF for direction and buy Seatrium on pullbacks.
Brokers had issued Buy recommendations with an average target price of $0.18. I've attached a copy of DBS' report on Seatrium for your reference (pls drop us a line for a copy).
Seatrium Daily, 12-mth chart with consensus calls
Chart source: Tradingview
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