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Saturday, 18 August 2012

KepCorp: 18 August 2012, Saturday, 6.15pm

Keppel Corp: 18 August 2012, Saturday, 6.15pm

Keppel Corp is having a very unhealthy run at the moment. Immediate term selling is possible. Being world's number 1 oil rig builder, it has strong fundamentals and enjoys many competitive advantages over its peers. This enabled it to be the last to break critical supports and to carry on a forceful and hard-to-maintain uptrend.

Since KepCorp's high volume selling last year 2011 August, its recovery has not been supported with volume over the one year. This entire technical rebound could prove to be a mere larger escape wave, set-up by Big Hands to make use of its better-than-expected corporate news (news are laggards in markets) to distribute and get out. Together with the local bank stocks and Singapore REITS, KepCorp has also been one of the key STI component stock that had been supporting the Straits Times Index (STI), enabling STI to be one of the strongest in the world. This enables Big Hands to short MSCI Singapore (SiMSCI) futures and the Singapore indexes in general.

It is worth noting that KepCorp's past 2 months of run-up has been on thin volume, akin to a car running on thin ice. Be cautious: Once the triple supports (PINK, GREY AND ORANGE Supports) break down, the intentional Sell Volume will come. Breakdown of $10.80 will see longs trampling longs for a rush to exit doors.

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