Keppel Corporation.. hot Hot HOt HOT HoOt Hou HuAt

Keppel Cop is a hot favorite by many analysts who see the potential in the oil and gas industry! Often I will receive reports with promising target price. The question on the mind of investor will be: Is it a BUY or should I wait and see? Let's take a look at the chart and see how it is doing technically.

Commodities are on the rise, but recent margin hike for Silver, Gold, and Oil have taken some speculators out from their position. This almost crash the Silver market, seeing price drop from ~49/ounce to last ~35/ounce. That is almost a ~28% drop!!! A nightmare I would say for latecomers to this asset class. This is where a stop loss will help investors get out from damaging position and keep losses small. Most importantly, sleep peacefully at night :) As always, our goal in trading is: Let profit runs, let loss stops ASAP. Now, how will this impact Keppel which is closely linked to the Oil industry?

To Keppel's chart, the long term trend is clearly UP as witnessed by the rising moving average. However, recent price has formed a reversal pattern, commonly known as the head and shoulder. Watch the neckline carefully (~11.25) as any break from this level will probably trigger further selling. For those who want to long, this may be an opportunity to pick up some better deals on price retracement to ~11.10. And for those who are already owners, do have some stop loss in place just in case it turns southwards. Based on the pattern, downside projection is ~10.30. Only time can tell, so just sit back and react...

Happy profiting!!!