Singapore Technology Engineering Ltd (ST Eng) has been trading within an ascending triangle formation since hitting 5-year low at 1.82 on 28 Oct 2008. The current resistance at 2.58 seems to be a tough obstacle, being tested numerous times without success, while higher lows are achieved, forming an ascending support line B which is forcing it towards the 2.58 resistance.

A breakout above the 2.58 resistance or below the support line B has to happen by early February 2009.

From the ascending triangle, it seems that the likelihood of it breaking above 2.58 resistance is high (even more so in a bullish environment).

However, one must not discount the fact in current gloomy environment, it is highly probable that ST Eng will trade below the support line B and continue its longer term downward movement.

Trade with caution.