Friday, November 22nd, 2024

Keppel Ltd (SGX: BN4) – Bullish Momentum in the Short to Medium Term

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

Genting Malaysia: Capitalizing on Tourism Recovery with Strong Earnings Growth

Date: October 10, 2024Broker: CGS International Securities Malaysia Sdn. Bhd. Company Overview Genting Malaysia Berhad (GENM) is positioned as a key player in the tourism and hospitality sector, benefiting from a recovery in tourism...

SingTel: Capitalizing on Digital Transformation Amidst Economic Recovery

Date of Report October 1, 2024 Broker Name UOB Kay Hian Company Overview Singapore Telecommunications Limited (SingTel) is a major telecommunications and multimedia company based in Singapore. It offers a comprehensive range of services,...

Mapletree’s Growth Potential: Leveraging China’s Stimulus for Strategic Expansion

Date of Report October 1, 2024 Broker Name UOB Kay Hian Company Overview Mapletree is a prominent real estate investment company based in Singapore, involved in property development and investment across various sectors, including...