When one door closes, another opens — that could be the case with Keppel Corp. Once the largest builder of jack-up rigs in the world, Keppel has to look for businesses that can fill the gap in its earnings as economies move to a low carbon environment. It may have found just the thing to fill this gap. During the company’s 1QFY2020 call with analysts and media, Keppel’s management indicated that electric vehicle (EV) infrastructure is a significant opportunity. The Singapore government has launched its Green Plan 2030. By that year, the target number of EV charge points in Singapore will be more than doubled. Keppel plans to target meaningful market share. In addition, it has a target of producing 7GW of power from green energy by 2030.

Technically, Keppel’s share price could strengthen. The stock rebounded off the confluence of its 50- and 100-day moving averages at $5.25 in the week of April 19 to 23. Resistance and breakout is at the twice tested $5.50 level. At present, volume expansion — which is required for a successful breakout — is absent. Nonetheless, the moving averages are rising. In addition, quarterly momentum has turned up and is now facing its own resistance and breakout level at its moving average and equilibrium line. Keppel should attempt a breakout as soon as quarterly momentum breaks out. This stock is unlikely to follow the old investment adage, “sell in May and go away”. This is because quarterly momentum is likely to move into a rising phase in the next few weeks. The 2021 high was $5.73 on a closing basis, and this may pose resistance. A successful break above $5.50 indicates a measuring objective of $6.10.

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