Technically, Keppel Corp is in a base formation with an increasing likelihood of an upside break. The chart appears to have formed at least a temporary or secondary bottom, and looks ready for a rebound as current moves look like they are very much part of a common base formation chart pattern. Volume is relatively low, as prices move sideways which is normal in base formations. Short term indicators are rising after turning up from oversold lows. More recently, quarterly momentum appears poised to move above its own moving average, and this could set the stage for prices to rise above its 50-day moving average at $4.59. A successful breakout, which needs to be confirmed by an expansion in volume, would ready prices for a rally to $4.80 initially. For this to materialise, prices need to hold above $4.40.
See also: To secure Keppel's future, its O&M unit needs to go — with or without Temasek
STI to stay resilient, taking a cue from overseas
The Straits Times Index is attempting to strengthen in the week of Oct 12-16 but its ability to do so could continue to be curbed by volatility in the US markets. Week-on-week, the STI is up 36 points. Quarterly momentum, however, did not move much and remains below its own moving average and resistance level. In addition, the volume remained low.
On the other hand, stochastics continues to rise, as does 21-day RSI. These indicators suggest that the index is likely to move higher in the early part of the week, towards the 100-day moving average at 2,574.
See also: STI steadies despite overbought US markets and rising US risk-free rates
ADX is falling and is down to 16. While levels have been lower, as ADX moves into the teens, market movements are likely to be sideways, within narrow ranges, and that looks increasingly likely to be a feature of this market.
