I never fully appreciate investors’ enthusiasm for local oil and gas plays Keppel, Sembcorp and Sembmarine whenever WTI gains but after looking at these charts, I intend to keep an open mind.
Chart #1 – Sembcorp, Keppel Corp and Sembmarine overlay with WTI, monthly chart, 2005 – 2017
This appears to be strong positive correlation over a long period from a bird’s eye view.
Chart #2 – Sembcorp, Keppel Corp and Sembmarine overlay with WTI daily chart, year to date
Over a shorter duration, at daily time frame level, the ‘strong positive correlation’ that appeared in the higher chart looks less convincing. If there is correlation at all, then it appears that Sembcorp suddenly diverged or derailed in November.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.