Thursday, March 24, 2011
Noble Grp : Testing upper downtrend channel
On 24 March, Noble Grp closed at 2.15 with average volume of 31.6 m shares traded.
Resistance levels : 2.16( downtrend resistance, green line) , horizontal resistance (orange line, tested on 18 Feb, 7-9 Mar),
2.25 ( 3 Mar high) , 2.32 (7 Feb high), 2.40 ( 13 Jan high)
Support levels: 2.07, 2.00, 1.94 (15 Mar low)
Indicators: MACD, RSI and Stochastics turning up
The defining features of the chart are the downtrend since 13 Jan that Noble Grp is still in, as well as a potential double bottom that may have formed at 1.94-1.96, on 24 Feb and 15 Mar. The steady rebound from the low of 1.94 further proves that 1.94-1.96 is a strong support region.
Noble also bounced off the 200 day MA of 1.94 on 15 Mar which is a good sign, indicating that sentiments are still bullish,
Noble closed just shy of the resistance at 2.16 which is fairly strong but if it can be broken with healthy volume 2.25 could be seen in due course. If the downtrend channel (green line) is decisively broken, Noble Grp could resume its uptrend movement and possibly test 2.40 in the future.
On another positive note, STI managed to recapture 3040. Hopefully this resistance will become support.