This article was first posted onSharesInvestment on 28 June 2010.
Past performance does not promise future results but the basis of technical analysis lies on the observation of previous phenomenon.
So, Sembcorp Indstries just repeated an action that we have seen 4 other times in the past 15 months and it is now up to the investor to interpret for himself.
See the brown line in the chart? That is a 100-day moving average. Since April 2009, price has managed to find support in its vicinity. By building bases at this line, it was able to rally on. In the past 2 months, price has again managed to do just that (blue arrows). Now, a base has probably been built.
Past action hints Semcorp direction; but investor has to watch resistance
Investors interested to know whether Sembcorp Industries resumes its previous trend should now pay attention to action at resistance levels.
