SembMar like KepCorp has been sold down since KepCorp announced possible orders cancellation and hit an intra-day low of $1.36 on 5th Dec 08. Since 1st Dec 08, price level has been capped at the $1.50 level and appearred to be building a base around the $1.40 level as suggested by the RSI and Stochastic indicators. The Stochastic signals are lying in the oversold region and started to turn flattish since 2nd Dec 08. RSI initially was flattish around the 30% level but the selling pressure soon made it gives way to sink to a lower level around the 18% and remain flattish around there. The DI pair still negatively spaced and no sign of convergence observed. All these indicate that in short-term, a rebound won't be happening soon and potentially base building is in the process. If year end rally does materialize, the base being build current could propel the stock price to re-test teh $2.08 level. Meanwhile, the downside for it will be around the $1.20 level. The risk to rewards ratio is very attractive. Investors/traders who believe SembMar could be one of the year end rally stock, could start to collect around the $1.40 to $1.20 region
