Keppel Corp – Breakout to go NORTH or go SOUTH?

Keppel Corp has formed an Ascending Triangle but it may form a Triple Tops if the stock breakdown from the Ascending Triangle. If the stock can stay within the Ascending Triangle and breakout from the resistance line of $8.42, the stock may go up to $10.30.
However, if Keppel Corp breakdown from the Ascending Triangle at around $8.20 and goes below $7.80, a Triple Tops is formed and send the stock to $7.20.

I have also compiled Analysts’ recommendation in the following table:

Keppel Corp still has upside potential base on today’s closing price of $8.19. The key consideration is to time the right price to buy to maximise the gain.

China Fishery breakout from triangle and looks really bullish!!!

China Fishery has a breakout from triangle and close the session at $1.28 with a hanging man candle today. It has chance to go up to $1.422 (161.8% Fibonacci line) and a very strong support at $1.127 (61.8% Fibonacci retracement) with raising volume.

All Standard Six Indicators showed Bullish Convergence.

  • Stock price above 20D, 50D and 200D MA.
  • Stock price at the upper band of Bollinger Band.
  • Stock price above Parabolic SAR
  • MACD blue-red crossover at upper half to show bullish convergence.
  • RSI & Stochastic on rising trend.
  • Volume is increasing for past few days and 1.6 million shares traded today.

Market sentiment is good today and hopefully will still be good for the next few days. If the stock price can stay above $1.24, short term the stock price may have another 10% upside potential. I will continue to monitor the stock to see whether it will reach $1.422.

If all my Technical Analysis goes wrong, I will hold the stock as Value investment and collect dividend because the company’s fundamental is good and the stock is still cheap.

Base on Q2, 2009 financial report:

  • PE = 8.1 (Historial high PE is 21.6 in 2005)
  • Dividend Yield = 4.3%
  • Net Earning = 23%
  • Current Ratio = 1.79
  • ROA = 12.9% (Base on 2008 Full Year)
  • ROE = 28% (base on 2008 Full Year)
  • Cash Flow = S$31 Million (Already 50% more than 2008 Full Year for the first 2 quarters due to capacity expansion)

Stock Background

  • 3 years historal high = $2.564
  • Current Price = $1.28 (only 50% of 3 years high)