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Technical Picture Looking Good For Keppel Land
Trend Spotting | 26 March 2010
By: Xavier Lim
Articles (51) Profile

Keppel Land is well-positioned to benefit from the 2 IRs, as we believe that the prices of the remaining unlaunched units of Reflections at Keppel Bay and Marina Bay Suites should increase upon the completion of the IRs. In addition, it holds another 3 pieces of land at the Keppel Bay area, and we expect the value of these land to appreciate in long-term.

Moreover, according to CLSA, rents are bottoming out especially for the newer and higher quality buildings in the area around Marina Bay. Keppel Land has 76% of its office exposure in that area, namely Marina Bay Financial Centre and Ocean Financial Centre which are currently under construction.

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Immediate resistance line. The technical picture as shown in the chart is improving for Keppel Land, which has broken above its $3.20‐$3.45 consolidation pattern. The share is moving gradually up in the trend channel, suggesting that the uptrend is still intact. This is supported by the RSI indicator that turned above the 50-mark level. Immediate resistance at around $3.70.

Next resistance line. We expect the bullish momentum to pick up significantly and the share to break through the $3.70 resistance line easily. We also expect the share to challenge the next resistance at $4.40 (a resistance line that formed during the consolidation phase between Jan-08 to May-08) in the near term.

Immediate support line. However, if the share is unable to break though $3.70, we expect the share to fall back to $3.45, the support of the 50-day moving average.

Armed with an arsenal of investment knowledge, Xavier is the Senior Research Editor at Shares Investment.

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