Technical Analysis – Semb Marine, Keppel Corp

Semb Marine, Daily, 23July09



We are recommending a buy for Semb Marine on the open.

Semb Marine retraced to test the 38.2% retracement level and momentum has picked up since. On 20July09, it found support at the 50 day moving average and closed above resistance at S$2.815. On 21 and 22July09, Semb Marine was showing signs of a top intra-day and we were expecting a correction. However, on 23July09’s trading, it closed above the intra-day top of 21 and 22July09. This inability to decline indicates to us that there is strength present.

The recommended stop is at S$2.71. It should be shifted to breakeven when Semb Marine reaches S$3.05 to protect capital.

With regard to trade management, we advise investors to take 1/3 of profit at S$2.98, just shy of $3.00, another 1/3 at S$3.15 and to let the other 1/3 run while trailing stops up. The rationale is that this seems to be a more volatile, trading market. It would thus be better to bank profits systematically.


Keppel Corp, Daily, 23July09



We also recommend going long Keppel Corp on the open.

Keppel Corp had a momentum divergence around support at S$6.52 and momentum has picked up strongly.

On 22July09's trading session, it tested its recent high and there was an intra-day sell off, indicating the possibility that there might be short-term weakness.

However, on 23July09's session, Keppel Corp closed above resistance at S$7.67, indicating that there is a high probability that selling has been overwhelmed by buying. In addition, Keppel Corp has also close above its recent swing high, which is another sign of strength.

We recommend a stop at S$7.37 and shifted to breakeven at S$8.20.

For trade management, we recommend a similar strategy as Semb Marine, sell 1/3 at S$8.35 (just below resistance), another 1/3 at S$8.99, just short of S$9.00 and trailing stops on the last 1/3.

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