Overview of Keppel Ltd

Lim & Tan Securities has released a detailed analysis of Keppel Ltd, forecasting a bullish price direction in the short term. The report, based on technical analysis, suggests that investors consider a “BUY” recommendation for the stock. Despite a relatively flat performance year-to-date, with a marginal decline of eight cents, the momentum of Keppel Ltd is poised to turn positive, signaling an imminent uptrend.

Short-Term Outlook: Bullish Momentum

The price action of Keppel Ltd is currently moving within an Ascending Channel pattern that began in mid-September 2024. This pattern, defined by two parallel upward-sloping lines, indicates a bullish signal. The Relative Strength Index (RSI), a key technical indicator, is trading at 51, well below the overbought level of 70. This suggests there is ample room for further price appreciation before any pullback occurs.

Should the bullish momentum persist, the share price is expected to face resistance at the \$7.07 mark, which represents the all-time high for Keppel Ltd. Conversely, if the price momentum turns negative, the \$6.60 level, identified as the daily low on November 22, 2024, is likely to act as a support level, limiting any downside in the short term.

Key Technical Levels (Short-Term)

• Last Done Price: \$6.76
• Resistance: \$7.07
• Support: \$6.60

Medium-Term Outlook: Sideways Trend

In the medium term, the stock is expected to trade sideways. The price movement is projected to remain range-bound, with resistance at \$7.25 and support at \$6.43. This indicates a consolidation phase, where the stock may hover between these levels before breaking out in either direction.

Key Technical Levels (Medium-Term)

• Resistance: \$7.25
• Support: \$6.43

Long-Term Outlook: Bullish Potential

The long-term outlook for Keppel Ltd remains bullish. The stock is expected to exhibit significant upside potential, with resistance pegged at \$7.70. On the downside, support is identified at \$6.20. This long-term optimism is supported by consistent historical trends, as highlighted in the monthly chart presented in the report.

Key Technical Levels (Long-Term)

• Resistance: \$7.70
• Support: \$6.20

Technical Charts Analysis

The report includes detailed analyses of Keppel Ltd’s daily, weekly, and monthly charts. These visual aids provide a comprehensive view of the stock’s historical performance and its potential future trajectory. Here’s a summary:

Daily Chart (Since July 2024)

The daily chart highlights the short-term bullish trend within the Ascending Channel pattern. This chart underscores the stock’s potential to break past its immediate resistance level of \$7.07.

Weekly Chart (Since 2015)

The weekly chart suggests that the stock is in a sideways trend in the medium term. This phase of consolidation could pave the way for a breakout if the broader market conditions remain favorable.

Monthly Chart (Since 2010)

The long-term monthly chart portrays a bullish outlook, reinforced by consistent upward movements over the years. Investors with a long-term horizon may find this trend particularly encouraging.

Investment Implications

Based on the analysis, Keppel Ltd presents a compelling opportunity for investors across different time horizons. The short-term bullish momentum and the long-term upward trend make it an attractive stock for both traders and long-term investors. However, medium-term investors may need to exercise patience as the stock consolidates within a sideways range.

It is essential for investors to consider the outlined support and resistance levels when making investment decisions. Additionally, the Relative Strength Index and the Ascending Channel pattern serve as reliable indicators for monitoring the stock’s performance.