Keppel Corp

Bullish breakout suggests more upside potential

Likely more upside ahead.

more upside potential in the days ahead after initiating a bullish

breakout from its 1-month flag consolidation pattern on heavy volume

yesterday. Incidentally, yesterday’s breakout also took place at

its key $7.70 key support (key resistance-turned-support level and

lower boundary of 6-month uptrend channel).Keppel Corp (KepCorp) could see

Positive signs from indicators.

strongly from the 50% mark and the MACD indicator rebounding

off the centerline and initiating a bullish crossover in the process,

these seem to suggest a build-up in upside momentum.With the RSI rebounding off

Initial resistance zone at $8.45.

to the key resistance zone at $8.45 (2009 high), breaking which,

the next resistance is at around $9.19 (minor peak in Sep ‘08).We expect the stock to advance

Immediate support at $7.70.

support, we pegged the subsequent supports at $7.00 (resistanceturned-

support) and $6.38 (minor troughs in Jun and Jul ‘09).Beyond the $7.70 immediate

Note: We currently have a fundamental HOLD rating on KepCorp

with $8.20 fair value

11 Sep 2009 MITA No. 020/06/2009

Please refer to the important disclosures at the back of this document.

Philip Teo

(65) 6531 9807

e-mail: philipteo@ocbc-research.com