Importance of Major Trend

Previous blog entry, I mention that in case of indecision, the price will eventually resolved according to the major trend (in this case, it is downwards).

On the hindsight, on studying of ComfortDelgro, we can see that the counter is now trading is a downward channel. It closed at 1.46 on Jan 14th 2009. Subsequently, it went down and had a short bounce. I was lucky to had queued at 1.50 on the Jan 30th and got rid of my holdings which was bought at 1.49. It closed at 1.31 on Feb 27th, ending Feb 2009 with a loss of 0.15 (1.46 - 1.31). Feb 2009 low was 1.25.