8 Singapore blue chips that broke decade-long trend lines

Long term stock investors must take note

These are component stocks (blue chips) in the Straits Times Index that broke very long term trend lines (some more than 10 years).
This is something significant that long term investors are usually concerned with. Simple reason: long term trend line broken -> that same trend is over. Is this absolutely true? Maybe, maybe not. Technical analysis deals with probabilities, not certainty.

For your reading pleasure. Note: The first few charts are boring except to very long term investors but the last 3 are a little bit more interesting.

 

BN4 Keppel Corp

Trend line from 1998 broke last year.

BN4 Keppel Corp

BN4 Keppel Corp

 

CC3 Starhub

Trend line from 2005 broken in May 2 this year.

CC3 Starhub

CC3 Starhub

 

J36 Jardine Matheson

Trend line started in 1998. Terminated 2015.

J36 Jardine Matheson

J36 Jardine Matheson

 

J37 Jardine Strategic

Trend line started in 2003. Terminated 2015.

J37 Jardine Strategic

J37 Jardine Strategic

 

S51 Sembmarine

Trend line 2001 – 2014.

S51 Sembmarine

S51 Sembmarine

 

U96 Sembcorp

Trend line 2002 – 2014.

U96 Sembcorp

U96 Sembcorp

There are 2 features in this chart for readers to take note. One may question the usefulness of watching these trend lines. This chart of Sembcorp shows us that lines like these ARE WATCHED. Note the very exact pullback that came after trend line break to go back and re-test the line. Technical analysis concept involved? Support turns resistance.

The other feature can be found in volume. Note that rise in volume accompanying price correction. Rise in volume matching fall in price = no good.

 

E5H Golden Agri

Trend line 2002 – 2013.

E5H Golden Agri

E5H Golden Agri

My personal take from this chart:

  1. So Golden Agri tells us that breaking a 10 year trend line is no big deal and does not result in a big correction.
  2. But fact is price is drifting down slowly that to the long term investor, good times are over.

 

C6L Singapore Airlines

Trend line 1998 – 2013. Same trend line November 2014 – May 2015.

C6L SIA

C6L SIA

SIA breaks trend line. SIA beats trend line. SIA falls off trend line. Score: trend line 2 SIA 1.

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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.   Soh's Twitter account @sohtionghum was ranked #23 out of The Top 70 Twitter Accounts To Follow In 2015 by MahiFX.   Disclaimer notice: "I do not have a financial advisor's license. I am not qualified by any regulator to give financial advice. I do not know you the reader. Your investment means and motive may be different from me. My posts here are based on observations and meant for education. I am not responsible for for any consequence from your actions."
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