Executive Summary

After months of struggle, Seatrium is showing signs of a strong comeback, igniting fresh optimism among traders. The long-term trend is shifting, with the 100-day moving average crossing above the 200-day moving average—a classic signal of a potential sustained uptrend. Short-term momentum is equally compelling, as the stock holds above key support levels, while my 1GT (Pro) Indicator has flashed bullish signals at precisely the right moments.

The battle now lies at the $2.30 resistance, where a breakout could pave the way for a surge toward $2.50–$2.60. But is this just a temporary spike, or the beginning of something bigger? Traders are watching closely, as opportunities like this don’t come often. Dive into the full analysis to uncover the strategy behind this potential breakout and how to position yourself before the next big move.

Seatrium Ltd has shown a notable recovery, transitioning into a more promising phase after a prolonged period of weakness since 2023 - 2024.

Observing the long-term trend, the 100-day moving average (red line) has staged a crossover above the 200-day moving average (blue line) in November last year.

Both of these 2 lines are pointing up now still with prices holding above that can point towards a potential long-term uptrend taking shape.

In the short term, the 20-day moving average (green line) reflects sustained upward momentum, as it is still pointing upwards.

This indicates a short-term uptrend, supported by strong buying activity at key levels.

The 1GT (Pro) Indicator has provided timely signals, with a recent bullish signal appearing near $2.10.

This signal aligns with the break above key resistance it has consolidated below since Oct 2024, reinforcing the validity of the uptrend.

The first bullish 1GT signal appeared in September 2024 as highlighted before the stock really took off. So far, no bearish signals have been seen.

Support has been established around $2.10 – 2.15, where buyers stepped in to defend the level multiple times.

This zone is crucial for traders seeking a conservative entry, as a pullback could offer an attractive opportunity to accumulate.

A stop-loss placed slightly below 2.10 would help manage risk effectively.

Resistance is evident at $2.30, and a more significant barrier is positioned at $2.50 - 2.60.

For those adopting an aggressive approach, an entry could be taken upon a confirmed breakout above $2.30, with $2.60 as the next target.

Such a move would signal the continuation of the current bullish trend, supported by a rising 20-day moving average.

Overall, Seatrium’s recovery appears to be gaining traction, with both the 1GT (Pro) Indicator and moving averages providing compelling evidence of improving momentum.

Conservative traders may look to enter near support from 2.10 – 2.15, while aggressive participants might wait for a breakout above resistance levels.

Regardless of the approach, proper risk management remains essential to capitalize on the stock's upside potential.

So, how does one take a position in Seatrium whereby you are able to reap more potential return to ride the uptrend further?

Those keen to ride on the short-term upward momentum in Seatrium shares can consider using warrants to leverage on that move.

The reason for that is that the warrants can potentially generate magnified returns for a given move in the underlying.

Since Seatrium moved 5.8% from $2.07 on 2 January 2025 to its current level of $2.19 as of 3 February 2025, Macquarie’s trending Seatrium call warrant Seatrium MB eCW250630 (ZRFW) has gained 7.1% from SGD 0.028 to SGD 0.030

How much higher can the warrant go from here if Seatrium will to head toward $2.30 or $2.50 to $2.60?

One tool to estimate the warrant performance is the Warrant Calculator tool.

To use the tool, simply enter the “Underlying price target” under the “Target exit variable” to the target price of SGD2.50, and move the date to a future day to observe the change in the “Warrant bid price” under the Simulated results.

So for example, assuming you were to buy Seatrium warrant now at SGD 0.030 today, and the underlying shares moved 14.7% higher to SGD2.50 by 21 February, the date of its result announcement, the warrant would gain 43.3% from SGD 0.030 to SGD 0.043, 3 times more than the underlying shares’ gain.

To find out the maximum holding period for this warrant, move the date to a further date until the warrant gains no longer provide any leveraged or geared gains relative to the underlying share’s gain.

For example, on 11 April 2025, the warrant will only make gains of 16.7% compared to the share price gain of 14.7%.

Meaning, those who have a target price of SGD2.50 on Seatrium shares can consider exit/cut loss from this warrant by 11 April 2025 even if Seatrium shares fail to reach SGD2.50 in next two months, as the best case scenario of Seatrium shares reaching SGD2.50 will result in price % gains similar to those achieved by buying Seatrium shares during this period.

The sharing on how one can take a position using warrants has been contributed by Macquarie warrants Singapore who is the issuer of these warrants listed on SGX.

About the Author - Joey Choy

Joey is Singapore’s renowned mentor on how to make an income by trading the stock market, an author and one of the most-watched, quoted and followed stock trading trainers in Singapore. Over the years, he has conducted numerous full house seminars, enriching thousands to trade more profitably. 

Joey’s come back story from a S$740k debt has been featured in the Business Times and inspired thousands in Singapore. In less than 3 years, he is highly regarded as one of the Top Tier Remisiers (Stock Brokers) and Traders, bagging numerous yearly awards like Top Trading Representative and Top CFD Achiever every year from 2014 to 2023 in Phillip Securities.

More about Joey here

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Look forward to see you on the inside!

- Joey

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