Sembcorp Industries (U96.SI) has staged a strong recovery from its recent lows and is now testing the key $7.00 resistance level, a crucial zone that could determine its next directional move.  Supported by consecutive 1GT Bullish signals and strengthening momentum, a successful breakout above this level could open the path toward the $7.80 highs. For traders looking to capitalize on this move with lower capital outlay, structured warrants offer a leveraged approach to participate in the upside potential, while keeping risk defined.

This move also comes at a time when the Singapore market is showing renewed strength. The Straits Times Index (STI) has continued to hold firm above key levels, with stocks like Sembcorp Industries leading gains amid improving sentiment. More broadly, market participants are beginning to recognise that Singapore equities are no longer “boring”, as capital flows return and structural tailwinds support a potential market revival. In such an environment, stocks testing key resistance levels like Sembcorp Industries may offer early signals of where capital is starting to flow. 

Sembcorp Industries (U96.SI) is a leading energy and urban solutions provider, with a growing focus on renewables and sustainable infrastructure. 

As a key component of Singapore’s market, the stock tends to exhibit strong trending behaviour when institutional flows return.

From a broader perspective, Sembcorp Industries had previously been in a well-defined uptrend during the first half of 2025, before entering a period of consolidation after earning results was released in August 2025. 

In more recent price action, momentum has started to shift decisively, whereby the stock has staged a strong recovery from its lows around $5.60, and is now testing the key $7.00 psychological resistance.  

This test of resistance is a significant development, as a successful breakout could signal a transition from consolidation into a trend continuation phase.

Furthermore, the 20-day moving average (green line) has also emerged and crossed above both longer-term moving averages (blue & red line), reinforcing the short-term strength. 

Supporting this move are the 2 consecutive 1GT Bullish Signals from the 1GT (Pro) Indicator, suggesting that upward move is still in play, with buyers maintaining control, as long as price continues to hold above the rising short-term trend, while attempting to break through $7.00. 

For a firm uptrend confirmation, one can look out for the 100-day moving average (red line) to cross above the 200-day moving average (blue line), aligning with the short-term sloping upwards. 

Looking ahead, a decisive move above the $7.00 would be needed to confirm bullish continuation, towards the next key upside level around the $7.80 resistance, which marks the previous swing high seen in July 2025. 

A successful retest of this level would represent a continuation of the broader uptrend and could attract further momentum-driven buying.

So, how does one take a position in Sembcorp Industries to ride the uptrend further with lower initial capital outlay?

Investors who wish to be exposed to potential upside moves in Sembcorp Industries (SCI) shares can consider using a SCI call warrant to magnify the share price return using lesser capital and without the risk of margin calls. There are currently two call warrants tracking SCI shares listed in the market and no put warrants. 

To find out how each of the call warrants will perform given Joey’s view on SCI shares, one can use the Warrant Selector.

Given that one is bullish on SCI shares, click on the call button after selecting “Sembcorp Industries from the underlying drop down:

If one intends to enter into a bullish position only if SCI stays above $7.00, e.g. $7.05, type it into the last price to update the current price of the two warrants if SCI were to trade to $7.05 today.

Type in the intended exit level of $7.80 and increase the number of weeks to observe how the two call warrants would perform (with all other pricing factors remaining unchanged):

In this case, If SCI took 4 weeks to increase10.6 % from $7.05 to $7.80, the first call warrant NBDW (https://warrants.com.sg/tools/livematrix/NBDW) will gain around 5.3 times more – 53.2% from SGD 0.062 to SGD 0.095, while the second call warrant WNTW (https://warrants.com.sg/tools/livematrix/WNTW) will increase 6.5 times more i.e. +65.5% to SGD 0.048.

Keep increasing the number of weeks and one would find that the percentage gains on both call warrants will erode. This is due to the effect of time decay – the costs of holding a warrant, where the longer one holds onto the warrant, the higher the holding costs.

While the second warrant WNTW provides higher returns in the short-term, the maximum holding period for this warrant is 9 weeks, as the warrant will now incur a loss of -3.4% even if the investor’s view on the shares is correct.

Looking at NBDW, the warrant would have stopped trading by the 15^th week, on 24^th July 2026 – 4 days before its expiry on 30 July (the warrants’ last trading date can be seen on the Warrant Search table above). Investors should aim to exit from the warrant by the 14^th week. The expected gain on the warrant by the 14^th week is +38.7% to SGD 0.086, lower than if SCI shares used less time to reach the target price of $7.80:

What if SCI fails to reach the target price of $7.80 by the 14^th week? Investors should aim to exit from the warrant anyway instead of holding it all the way to expiry.

Warrant holders run the risk of ending up with zero warrant value if the settlement value of SCI shares on expiry date is below the warrant’s strike level. For NBDW, the strike level is $,6.50, meaning if SCI shares plunge between the last trading date of 23^rd July to its expiry date of 30 July, one will get nothing back at expiry.

The above example demonstrate the importance of an investor using warrant tools to work out the maximum holding period of a warrant and abiding by it – the failure of which can lead to losses even if one’s view was right.

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.

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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