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.
Trend line from 2005 broken in May 2 this year.
J36 Jardine Matheson
Trend line started in 1998. Terminated 2015.
J37 Jardine Strategic
Trend line started in 2003. Terminated 2015.
Trend line 2001 – 2014.
Trend line 2002 – 2014.
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.
My personal take from this chart:
- So Golden Agri tells us that breaking a 10 year trend line is no big deal and does not result in a big correction.
- 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.
SIA breaks trend line. SIA beats trend line. SIA falls off trend line. Score: trend line 2 SIA 1.