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.
- Low caused by SARS Epidemic between November 2002 – July 2003.
- Low driven by bursting Subprime Crisis between December 2007 – June 2009.
- Low driven by bursting ‘SHHK Bubble‘ leading to January 2016 stock crash.
- The trend line does not predict how deep stock price will fall below.
- Duration for each dip below the line 9-12 months.
- 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.