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Grupo Aeroportuario Del Sureste SA de CV (ASR -0.52 or -1.49% to $34.34) continued moving lower after recently breaking its upward trendline.  This reiterates the importance of using technical indicators as part of the strict sell discipline one must adhere to when investing.  This issue appeared in the September 22, 2005 After-Market Report (read here) as it tested its upward trendline.  In the analysis then published, both the trendline and its 50 DMA were mentioned as key support. Shortly thereafter, selling showed up and sent prices slicing through its trendline.  Then, heavier selling showed up, and volume spiked way above average on 10/10 and 10/11 as it broke down under its 50 DMA.  It has continued declining, and is now on a nine-session losing streak.  This exemplifies how ignoring technical sell signals such as trendline and moving average violations can be extremely hazardous and can allow losses to cause greater damage to one's portfolio performance.

Grupo Aeroportuario (ASR -$0.10, or -0.25% to $39.60) was recently featured in the July 8th, 2005 CANSLIM.net Mid-Day Breakouts Report (read here) at $33.43 as it was moving up towards its pivot point of $33.80.  Later that afternoon, it did blast above its pivot point on massive volume. It rallied +25% in the ensuing months.  Connecting lows on the chart during that time frame reveals how it has developed and found support at an upward trendline.

It started out Thursday's sesssion with a negative bias and fell considerably, however it managed to reverse nicely off its lows above its upward trendline.  It ended the day with only a 10 cent loss and a strong close near the very top of its intra-day trading range.  CANSLIM.net has included references several times in recent notes that this issue "May test support of upward trendline. Still remains in uptrend since first highlighted on 7/8/05 near $33 and in more detail in the Aug 2005 issue of CANSLIM.net News on 8/1/05 (read here)"

Ideally, the initial support offered by its upward trendline would not be breached.  Then, the next important support level that comes into play is the stock's 50-day moving average (DMA) line and prior chart support near the $37 level.  As long as this issue continues trading above these important support levels, higher prices are likely to follow. However, as previously noted, lower prices may follow if technical support is breached.