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Sunday, March 14, 2010

Noble Group Technical Analysis (12th March 2010)

Noble is looking more and more bearish to me even though it broke a new high.

To me, it appears that a potential double top formation could be formed. In addition, it also appears that a bearish rising wedge is in the works.



Below is my simple chart on Noble:



It looks bad. The MFI failed to push to a new high even though Noble did. In addition, the volume is decreasing as the price was increasing... a volume divergence.

Indicators like CCI and %R indicate overbought levels, while stochastics has cut down to become bearish.

Be fearful when everyone is greedy. Clearly, commodities was super bullish, and many has become very greedy on it. I remain fearful of commodities, and would rather be cautious and sit out it's bull run, if there's any more.

3 comments:

  1. Hi JW,

    I must learn how to use the GMMA.

    The short term negative divergence between price and volume is quite obvious. Overall, this counter looks a bit tired.

    Not vested.

    ReplyDelete
  2. I am with you on this, however I also see a potential inverse H&S forming. Lets see how this pans out.

    Im vested in this counter. I opened shorts on this one last friday.

    ReplyDelete
  3. Hi AK71,

    agreed. I'm not vested as well.



    Hi mark,

    thanks for dropping by. I didn't open shorts as well. Was helping a friend check it :)

    ReplyDelete

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