Update on Kepcorp 12 April 2008

Kepcorp tested the 25 day moving average but closed strongly above the 50 day moving average on Friday. It formed a bullish engulfing candlestick in the process which was very bullish. Volume was also very good.

However the Dow closed down 2% on Friday.

I hope to be able to get the chance to buy Kepcorp on Monday at $10. I think the $10 support will be strong.

Kepcorp is giving $0.10 + $0.45 (special dividend) dividend ex-dividend on 29 April 2008.

Kepcorp is announcing results on 24 April 2008.

Last chance to buy some?



Looking at the SMA/EMA crossovers it looks like a trend change to the upside has just started.

One trading method states that you wait for the first trading day to make lower lows and lower highs after the crossover point and you mark that day's range. Then you wait for price to go above the high of that marked day's high and that would be the entry signal.

If on Monday Kepcorp has a lower low and lower high than on Friday, that would be the "mark day". A price move above the mark day would be an entry point.

I think looking at the $0.55 dividend buffer plus the added results reporting coming on 24 April I'll be a bit more aggressive and buy in at the 25 day moving average support level.

Update on Kepcorp 5 April 2008

I am quite keen on Kepcorp. On Friday it broke above the downtrend line. It has also cleared the 50 day MA on the 2nd attempt (1st attempt was in Jan 2008 look at the drop!)

$10.36 which is the 50 day MA should be the support for now.

$11.30 is a very likely target. But I would be gunning for the gap at $11.94-$11.86.

$12.63 is the crossover of the 200, 25 and 50 day MA and will be the resistance cap.

Update on Kepcorp 29 March 2008

Still trading in consolidation channel. A move and close above $10.14 would be a breakout on upside. Gaps noted at 10.58-10.48, 11.94-11.86. These might be targets for the stock.

No spike of volume for this counter in past week.

Watch for $10.14 level.

Kepcorp

I've decided to monitor the charts for the STI components. Will update them weekly or if there are major moves that are of significance. Kepcorp is the first on the list so here goes.

Kepcorp has a confirmed Head and Shoulder Top (HST) pattern after it broke the neckline. It also had further moves down breaking out of the consolidation flag as well as breaking the longterm upward trendline.

Measured target based on HST pattern is 8.90. On average the decline in prices from breakout point is 22%. Breakout price was 12.70, thus giving a price target of 9.90 based on statistics.

Necktie of moving averages (200, 50, 25 day) is 12.70 coincides with the breakout price. 12.70 would be a major resistance point.

It looks like Kepcorp might be consolidating again forming a possible flag formation. Watch for breaks.