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Wednesday, August 4, 2010

Noble: Downtrend.

Noble has been in a downtrend since the middle of March. This downtrend is intact.  With MFI forming lower highs, which suggests a lowering demand, and OBV dipping gradually, suggesting consistent distribution, the technical picture is rather negative.  The MACD is in negative territory and has just completed a bearish crossover with the signal line. Momentum is negative and it is not improving.




The counter is nowhere near oversold and price could sink lower if there is no catalyst strong enough to turn market sentiments positive. Price is currently resting on immediate support at  $1.66.  Immediate resistance is at $1.70 as provided by the 20dMA and candlestick resistance. 

Noble to sell coal mine stake to Gloucester, Australian says, for as much as A$300 million ($370 million).
Wednesday, 04 August 2010
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2 comments:

  1. AnonymousAugust 5, 2010 at 1:52 PM

    Take a look at weekly chart. A doji might be forming.

    ReplyDelete
  2. AK71August 5, 2010 at 9:05 PM

    Hi ezinvest,

    Yes, it seems so. We will know at the end of the trading session tomorrow. :)

    Looking at the MFI and RSI on the weekly chart, we see lower highs too. The OBV shows distribution. Not encouraging.

    We really want to spot some positive divergence. That would be a nice signal that a reversal might not be far off. ;)

    ReplyDelete