Keppel Corp at Support - Swing Opportunity?

Keppel Corp (BN4)
Trade war may have shaken the market, but oil prices remain stable with Brent continue trading above US$70/bbl.

With Oil price staying relatively high, it gives prospect of a Oil&Gas industry recovery. And one of the beneficiary when O&G industry recovers would be Keppel Corp, one of the largest Oil Rig builder globally.

Keppel Corp remains as one of the few stocks one STI with a positive Relative Strength (RS) against the STI. With Keppel Corp (or BN4 we brokers call it) may potentially see an reboud as the stock trades towards a "Resistance-turned-Support" zone. With trading volume slows as the stock trends lower, this signifies that the eager of sellers have slowed.

With both, we may see Keppel Corp rebounds from here with first price objective S$6.60 and next at S$6.75.

Disclaimer Applies.

Wyckoff's Law of Effort

Law of Effort Wyckoff's Law of Effort states that on any single trading day (or week depending on time frame), huge volume (effort) push by participants should see huge price movement, resulting in a wide spread (long body). This is a basic principle of effort and result. However, as per Singtel's case study, we saw huge selling volume on 11 May, yet the price action only shows a narrow spread (small body). This divergence of effort and result in Wyckoff's Law of Effort principles, indicates possible exhaustion in selling or hidden buying. Thus, with a lack of weakness, Singtel should continue trading range bound for the coming days or weeks till further strength or weakness is observed. Swing Traders who trades range can consider positions at 3.70-3.72, with exit target 3.76-3.78.

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Keppel DC REIT (AJBU): Expect price to trade towards S$2.00

Keppel DC REIT (AJBU) Expect price to trade towards S$2.00 We have observed a decrease in technical supply at the S$1.80 support area during recent trading sessions. Furthermore, a softer interest rate outlook could be advantageous for the Data Centre operator. Consequently, we anticipate the REIT to move towards our initial target of S$2.00, with the potential to reach S$2.20 if it breaks through resistance. Our stop level is set below S$1.72. Disclaimers Apply

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