NOL: Found a floor.

It seems to me that NOL's share price has found a floor, if not the bottom.

If we were to draw a trendline connecting the highs since 5 Jan 11, it is obvious that the long term downtrend remains intact. This trendline approximates the declining 100dMA which makes this the MA to watch. Then, why do I say the share price has found a floor?

Looking at the MACD, we see that it has been rising since hitting a low in late August. In the last session, it broke into positive territory which signifies the return of positive momentum.

The last three sessions also saw the share price trading above the 50dMA, suggesting that this MA could be resistance turned support. This is approximately at $1.125. If this support holds strong, we could see price rising to test resistance provided by the 100dMA which approximates $1.30.

Given the circumstances, buying closer to support could be a good idea for a trade.

ARA: Divested at $1.26 and $1.30.

Trading volume for ARA expanded today, being the highest in six sessions, which helped to form a long wickless white candle. This is the most bullish of candles. Could we see its share price climbing higher tomorrow? We could.

However, I have completely divested my long position in ARA and would not be able to benefit from further appreciation in its share price, if any. Completely? Yes. My overnight sell orders at $1.26 and $1.30 were both filled today. So, does it mean that I believe that ARA's share price has peaked for now? I don't know if it has peaked but I feel that it is nearing a longer term and, most likely, stronger resistance.

Longer term resistance? Connecting the highs of 31 May, 1 Aug and 1 Sep will give us a clear trendline which approximates the declining 50dMA which is at $1.32 thereabouts. If this resistance could be overcome, we could see the counter's share price moving higher. Otherwise, it would retrace to supports.

I simply followed my TA (for what it is worth) and divested as the gap at $1.26 was filled and at $1.30 which is just one bid away from gap fill at $1.305. The latter was filled after the market closed at 5.04pm.

Good luck to all who are still vested.

Related post:
ARA: Partial divestment at $1.18.