20-year trend line of ST Engineering, minus fear-driven dips

This rising 20-year trend line in the 3M chart (3 months per candle) of ST Engineering  (S63.si) could be a pretty good support if we take away the fear-driven lows.

  1. Low caused by SARS Epidemic between November 2002 – July 2003.
  2. Low driven by bursting Subprime Crisis between December 2007 – June 2009.
  3. Low driven by bursting ‘SHHK Bubble‘ leading to January 2016 stock crash.
ST Engineering 3M chart from 1998 - January 2018

ST Engineering 3M chart from 1998 – January 2018

Further observations:

  1. The trend line does not predict how deep stock price will fall below.
  2. Duration for each dip below the line 9-12 months.
  3. Over the last 3 crises, buying-the-dip whenever price fell below this line turned out to be pretty good investment strategy but do note that past performance may not equal future performance.
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