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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  ( 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.

Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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