Sembcorp Marine forms bullish "Head and Shoulders Bottom" - 6th Jan 2009

A "Head and Shoulders Bottom" chart pattern formed on Sembcorp Marine. This bullish signal indicates that the price may rise from the close of 1.93 to the range of 2.24 - 2.34. The pattern formed over 35 days which is roughly the period of time in which the target price range may be achieved.

A Head and Shoulders Bottom is considered a bullish signal. It indicates a possible reversal of the current downtrend into a new uptrend. a perfect example of the Head and Shoulders Bottom has three sharp low points, the middle one being lowest, created by three successive reactions in the price of the financial instrument. The technical event occurs when the resistance marked by the "neckline" is broken, thereby confirming the pattern.

This bullish pattern can be seen on the following chart and was recognized by Recognia Inc.'s patent pending pattern recognition technology.