With oil price heading lower and breaking $30 per barrel , it is going to be super bearish and indirectly affecting the future contracts and revenue for Rigs builder such as Keppel Corp, Semb Marine and Semb Corp Industries.
As reflected on the chart, Keppel Corp has been dropping quite furious from the high of $6.55 to a low of $4.84 within a span of 10 trading days. The price is hovering way below both SMA lines such as 20SMA,50SMA & 100SMA lines which is generally very bearish/negative.
From TA point of view , it is on a down trend mode. With both MACD & RSI driven into a oversold situation , short term wise it is overdue for a technical rebounce. Whether the rebounce is going to be strong or not that also depends quite a lot on oil prices and the China market.
If after the re-bounced and again the price dropping down and breaking down of $4.80 support level that may send the price lower towards $4.50 then $4.00 is imminent.
Quite similar pattern can be seen for Semb Corp Industries from the chart below.:
Semb Marine is also in the same situation like Keppel Corp & Semb Corp Industries as reflected from the chart .
It may continue to trend lower towards $1.20 then $1.00 soon.
The situation now is that the oil price is not going to get any better. It may continue to drift lower as it has just broken the $30 barrier that is rather negative.Some analyst are focusing to go lower towards $20 per barrel.
(trade / invest base on your own decision)
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