KepCorp’s head and shoulders

Hello everyone,

I have a review of a successful chart pattern for you all today.

This is Keppel Corp, BN4.SI. From the start of this year till last month, KepCorp traded in a good-looking head and shoulders. A head and shoulders pattern to me is simply price at three regions, with the middle region above the other two. The pattern is even better if there are “mini patterns” inside one or more of the three regions. In this case, there was a smaller head and shoulders pattern in the head of the larger head and shoulders (brown boxes).

At the time when stocks markets cracked because of the US debt downgrade, KepCorp broke down from the large head and shoulders. In doing so, it also crossed below the 200-day moving average. This is a perfect example of how a head and shoulders is supposed to look like after breakout. Although looking into the rearview mirror does not help us much now, since what has happened has happened, I hope this blog will also serve as a vault of chart patterns on local stock charts. So for now, kudos to technical analysis.

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.


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