Executive Summary

As global markets reel from profit-taking and warnings of stretched valuations, one Singapore blue-chip has quietly stood its ground. While the Straits Times Index stays around the 4,400 mark, Keppel Ltd (BN4.SI) has previously broken out above key resistance levels, with 2 consecutive 1GT Bullish signals still playing out from April. This highlights Keppel’s relative strength and renewed upward momentum.

In this article, I break down what the charts are revealing through my One Good Trend (1GT) strategy from the key support and resistance zones that matter now, to how traders can position themselves using Daily Leverage Certificates (DLCs) listed on the SGX. Whether the uptrend continues or short-term volatility sparks a pullback, I’ll show you exactly what levels to watch and how to ride the next potential move.

Keppel (BN4.SI)

Keppel Ltd (BN4.SI) is one of Singapore’s most diversified conglomerates with businesses spanning infrastructure, real estate, renewables, and asset management. 

Over the past few months, the counter has staged a strong recovery in line with the rebound in Singapore blue-chip names, supported by steady earnings visibility and rising interest in defensive dividend plays.

After consolidating between $8.00 and $9.00 for several months, prices have broken out firmly above the consolidation band, accompanied by a fresh 1GT Bullish signal that appeared near the $9.00 level. 

2 consecutive 1GT Bullish Signals are still playing out, driving the stock to new year-to-date highs and confirming renewed upward momentum.

The longer-term trend remains firmly intact, with the 100-day moving average (red line) sloping upwards and comfortably above the 200-day moving average (blue line), a clear sign that the long-term strength remains strong.

On the short-term front, the 20-day moving average (green line) has turned sharply higher, and prices are trading well above it. 

This alignment of all three moving averages signals that both short- and long-term momentum remain bullish.

Recent price action shows Keppel testing the $10.00 psychological level, attempting to break above, while the next resistance sits around $10.50, where some profit-taking could return. 

Any near-term pullback that holds above the immediate support zone around $9.50, may offer a second-chance entry for those who missed the earlier breakout. 

With the latest 1GT Bullish signal still active and no exit signals in sight, Keppel looks poised to extend its current move further if buying interest continues to build.

So, how does one take a position in Keppel whereby you are able to reap more potential return to ride either the downside or upside further?

Those keen to ride on the short-term upward momentum in Keppel shares can consider using Daily Leverage Certificates (DLCs) traded on SGX to leverage on that move.

The Keppel DLCs are designed to provide a fixed 5 times leverage performance on the underlying stock’s daily movement.

This means that for every 1% move in Keppel’s share price, the 5x Long DLC will move approximately 5%, and likewise for the 5x Short DLC in the opposite direction, before fees and costs.

For traders who are bullish, they can consider the 5x Long DLC on Keppel (GSEW).

For those who are bearish or expecting a retracement, the 5x Short DLC (YKEW) could be used instead.

Singapore Stock DLCs

The Singapore Stock DLCs are designed to provide a fixed no. of times leverage performance on the underlying Singapore stock’s daily movement, based on a market-to-market close basis on the SGX. 

Using Keppel DLCs as an example, this means that for each 1% move in the underlying stock price, the respective DLC will move approximately 5% in the corresponding direction, before fees and costs.

• If the Keppel stock rises by 2%, the 5x Long DLC will rise by 10%, and the 5x Short DLC will fall by 10%, before overnight costs and fees.
  

• If the Keppel stock falls by 2%, the 5x Short DLC will rise by 10%, and the 5x Long DLC will fall by 10%, before overnight costs and fees.
  

These DLCs are listed and traded on the SGX just like any other stock from 9:00AM to 5:00PM, and can be accessed through your regular brokerage account. 

Visit https://dlc.socgen.com/en/home to find out more.  

About the Author - Joey Choy

Joey is Singapore’s renowned mentor on how to make an income by trading the stock market, an author and one of the most-watched, quoted and followed stock trading trainers in Singapore. Over the years, he has conducted numerous full house seminars, enriching thousands to trade more profitably. 

Joey’s come back story from a S$740k debt has been featured in the Business Times and inspired thousands in Singapore. In less than 3 years, he is highly regarded as one of the Top Tier Remisiers (Stock Brokers) and Traders, bagging numerous yearly awards like Top Trading Representative and Top CFD Achiever every year from 2014 to 2023 in Phillip Securities.

More about Joey here

Hope you have found the above content useful 😃 

If you are keen to find out more on how to be a VIP Client of mine to receive daily market updates and exclusive actionable stock ideas, you can check it out here!

Look forward to see you on the inside!

- Joey

Disclaimer and Warning

This publication is provided by Joey Choy for general information and educational purposes only.

This content has been produced by Joey Choy. Singapore Exchange Limited (“SGX”) and/or its affiliates (collectively with SGX, the “SGX Group Companies”) have not had any input into this publication and/or the content, and SGX shall not be responsible or liable for the same.

This document/material is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document/material has been published for general circulation only. It does not address the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a financial adviser regarding the suitability of any investment product before investing or adopting any investment strategies. Use of and/or reliance on this document/material is entirely at the reader’s own risk. Joey Choy shall not be liable for any loss arising from any investment based on any perceived recommendation, forecast, or any other information contained here.

Investment products are subject to significant investment risks, including the possible loss of the principal amount invested. Past performance of investment products is not indicative of their future performance. Any forecast, prediction or projection in this document/material is not necessarily indicative of the future or likely performance of the product. Examples (if any) provided are for illustrative purposes only.

This document/material is not intended for distribution to, or for use by or to be acted on by any person or entity located in any jurisdiction where such distribution, use or action would be contrary to applicable laws or regulations or would subject the SGX Group Companies to any registration or licensing requirement.

While each of the SGX Group Companies have taken reasonable care to ensure the accuracy and completeness of the information provided, each of the SGX Group Companies disclaims any and all guarantees, representations and warranties, expressed or implied, in relation to this document/material and shall not be responsible or liable (whether under contract, tort (including negligence) or otherwise) for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind, including without limitation loss of profit, loss of reputation and loss of opportunity) suffered or incurred by any person due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information, or arising from and/or in connection with this document/material.

The information in this document/material may have been obtained via third party sources and which have not been independently verified by any SGX Group Company. No SGX Group Company endorses or shall be liable for the content of information provided by third parties (if any). The SGX Group Companies may deal in investment products in the usual course of their business, and may be on the opposite side of any trades. Each of SGX, Singapore Exchange Securities Trading Limited and Singapore Exchange Bond Trading Pte. Ltd. is an exempt financial adviser under the Financial Advisers Act (Cap. 110) of Singapore. The information in this document/material is subject to change without notice. This document/material shall not be reproduced, republished, uploaded, linked, posted, transmitted, adapted, copied, translated, modified, edited or otherwise displayed or distributed in any manner without SGX’s prior written consent. Please note that the general disclaimers and jurisdiction specific disclaimers found on SGX’s website at http://www.sgx.com/terms-use are also incorporated into and applicable to this document/material.

This article was created in partnership with Societe Generale (Singapore branch). This advertisement has not been reviewed by the Monetary Authority of Singapore. The views expressed under this article represent the personal and independent views of the author and do not constitute investment advice. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see http://www.dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.