NOL: A white candle.

A white candle formed on NOL's chart today. For most of the day, I saw a black spinning top after its share price gapped down at the start of the day. So, the rather large buy up, after market closed, which pushed up NOL's share price to close 1c higher was somewhat surprising.

However, the white candle was formed on lower volume compared to the previous session's black candle. Share price could possibly have risen due to short covering and not because of an abundance of buyers.

The white candle also did not manage to cover even half the length of the previous day's black candle. So, a white candle is nice but it might not mean that NOL has found its base.

Share price did touch a lower low today at $1.41 while the MACD flattened. This is encouraging. If the MACD should turn up clearly in the next session or two, we would have the positive divergence which I mentioned in my previous blog post on NOL.

Now, the MACD is a lagging indicator which is the case with other momentum oscillators. So, I would use Fibo lines to help suggest where I might find stronger supports for NOL's share price in case of further weakness.

I see the golden ratios at $1.39, $1.375 and $1.36. I could possibly add to my long position at these prices if they were ever tested as the chances of a positive divergence forming are rather good.