Date: September 17, 2024
Broker Name: CGS-CIMB Securities

Company Overview

Keppel Corporation Limited operates across several core business segments, including offshore and marine, infrastructure, property investment and development, telecommunications and transportation, energy, and engineering. The company is listed on the Singapore Exchange and is a key player in Singapore’s industrial and commercial sectors.

Technical Buy Recommendation

Keppel Corp Ltd has been given a “Technical Buy” recommendation, signifying a bullish outlook. The stock is currently showing signs of a rebound from the bottom of a consolidative range, providing a potentially favorable entry point for investors.

Price and Entry Levels

• Last Price: 6.33
• Entry Price(s): 6.33, 6.00, 5.81
• Stop Loss: 5.69

Support and Resistance Levels

• Support 1: 6.03
• Support 2: 5.75
• Resistance 1: 6.49
• Resistance 2: 7.07

Target Prices

• Target 1: 6.68
• Target 2: 6.82
• Target 3: 7.10
• Target 4: 7.60

Technical Indicators

The analysis points to several technical indicators supporting a bullish outlook for Keppel Corp Ltd:

1. Bullish Pennant Formation: The stock has broken above a bullish pennant formation with a strong bullish bar.
2. Ichimoku Indicators: Prices are trending above all Ichimoku indicators, which are widely used to signal bullish momentum.
3. MACD Crossover: The MACD and its signal line are likely to form a crossover at the bottom, indicating further upward momentum.
4. ROC Indicator: The 23-period Rate of Change (ROC) has risen above the zero line, signaling positive momentum.
5. Stochastic Oscillator: The Stochastic Oscillator is rising above the 50-level, which supports the bullish case.
6. Directional Movement Index (DMI): The DMI confirms the stock’s bullish strength.
7. Volume Expansion: The trading volume is in healthy expansion, indicating strong investor interest.

Analyst Commentary

According to the report by CGS-CIMB Securities, Keppel Corp’s price action reflects a strong bullish continuation after a solid rebound. The stock has broken out of its consolidative range, and multiple technical indicators suggest the potential for further upside. This is particularly supported by the bullish pennant formation and various momentum indicators.

The technical setup and healthy volume expansion highlight a positive outlook for the stock, making it an attractive buy for investors looking for opportunities in Singapore’s equities market.

Conclusion

Keppel Corp Ltd is positioned for a strong rebound, with a bullish continuation pattern that could lead to price targets ranging from 6.68 to 7.60. Investors should be aware of the stop loss level at 5.69 to manage risk, but the overall momentum indicates further potential for upside in the near term.