KepCorp since announced its earnings on 22nd Jan 09, it has been in the news lately for completing series of five scorpion jackups on time and also its client Rowan wanted a review of the payment terms worth US$780m on 4 rigs. Despite the mixture of news, KepCorp share price has been stabilized at the $4.00 level probably with the 21 cents/share dividend cushioning the downside for any bad news.
Technically, from the RSI and Stochastic indicators, a possible of bottoming is in phase as both behaved flattish in the oversold region. Though DI pair is negatively spaced but with ADX signal lying below 20 level, any downside will be limited for the time being. Potentially could rebound from oversold once RSI and Stochastic signals show signal of cutting up. A strong rebound could see it testing its recent high of $5.40. A breakdown from $4.00, would probably see it testing the $3.75 support.
