Keppel Corp won 1 Billion contract from Brazil - on an uptrend!

SINGAPORE, Feb 1 (Reuters) - Keppel Corp ( KPLM.SI ), the world's largest oil rig builder, on Monday said it has won a $1 billion contract with a joint venture partner to build and operate a rig platform in Brazillian waters.
The contract, Keppel's largest rig deal in over two years, was clinched by a joint venture between Keppel and J. Ray McDermott, a unit of U.S.-listed McDermott International ( MDR.N ). The deal will bolster Keppel's order book, which has been falling over the past year and stood at $5.6 billion at end-December.
The contract was awarded by a Petrobras ( PETR4.SA )-Chevron ( CVX.N ) joint venture.
Keppel said the P-61 tension leg wellhead platform will be deployed in Brazil's Papa-Terra field in the Campos Basin and will operate alongside a floating production storage offloading vessel to handle up to 180,000 barrels of oil per day.
"Brazil's offshore sector is embarking on a very exciting phase with many of Petrobras' new projects put on fast-track," Chow Yew Yuen, president of Keppel Offshore & Marine USA, said in a statement.

My take (this is written before i saw the contract but should be relevant except that Target price may be higher now):
Good buying interest over past 3 days (3 white candle) but note that this comes from a very low base. The RSI index still within range and have not actually reach overbought region,

Personally I believe can still hold on to this counter, but it may hit resistance at 8.66 to 8.70 region in the near term, but with this contract I expect it to try for a new high (prelim target 8.80). If you can hold longer and do not want to trade, this counter is still on an uptrend (as suggested by higher high and higher low it has been achieving over the past months).

Fundamental looks promising with a strong order book. Recent win of oil rig project is also a good sign that the oil exploration project may be on a rise.

For your consideration. This is my personal opinion.

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