Keppel Ltd (SGX: BN4) – Bullish Momentum in the Short to Medium Term
Recommendation: BUY
Target Price: S$6.48 (Short-Term), S$7.00 (Medium-Term)
Stop Loss: S$6.02 (Short-Term), S$5.85 (Medium-Term)
Date of Recommendation: 3rd September 2024
Broker: Lim & Tan Securities Pte Ltd
Investment Thesis: Keppel Ltd – Riding the Bullish Wave
Keppel Ltd is currently exhibiting strong bullish momentum, supported by positive technical indicators. The stock has been moving within an ascending channel pattern since early August 2024, which suggests further gains ahead. The bullish crossover observed in the MACD chart further reinforces this positive outlook, making Keppel Ltd an attractive buy for investors looking to capitalize on short to medium-term price movements.
- Technical Analysis Insights:
- Ascending Channel Pattern: Keppel Ltd’s share price has been moving within a well-defined ascending channel since early August 2024, marked by two parallel upward-sloping lines. This pattern is typically a bullish signal, indicating that the stock is likely to continue its upward trajectory.
- MACD Bullish Crossover: The MACD line recently crossed above the signal line, a key indicator of potential upward momentum. This crossover occurred two weeks ago, further solidifying the bullish outlook for the stock.
- Short-Term Resistance and Support: The immediate resistance level is identified at S$6.48, which aligns with the daily high observed on 1st August 2024. On the downside, the support level is pegged at S$6.02, as outlined by the trend low on 20th August 2024.
Valuation and Financials:
Keppel Ltd is currently trading at S$6.16. In the short term, the stock is expected to reach S$6.48, with potential to climb to S$7.00 in the medium term. The technical analysis suggests that the stock’s bullish momentum is supported by solid resistance and support levels, making it an attractive option for investors seeking to leverage short-term gains.
Share Price Catalysts:
- Sustained movement within the ascending channel, driven by strong buying interest.
- Continued bullish signals from technical indicators such as MACD and support/resistance levels.
- Positive market sentiment and broader economic conditions favoring industrial and infrastructure sectors.
Thank you
