Home > Noble Grp > High selling pressure on Noble

High selling pressure on Noble

2010Jul-Noble Grp-800x600 daily

high selling volume on friday close

2010Jul-wkly-Noble Grp-800x600

044 GMT [Dow Jones] Noble Group (N21.SG) halted pending announcement at 0230 GMT. Shares closed +1.2% at S$1.72 yesterday. Supply chain manager earlier today announced stepping down of Richard Elman as chairman, with current independent board director Tobias Brown replacing him as executive chairman from September 1. “He (Elman) built up Noble from day one but he had previously made known his plans to retire gradually. It’s part of an ongoing process to refresh their senior management team and shouldn’t have any major impact on the share price,” says analyst at Singapore bank. Elman will remain as Chairman Emeritus. Noble says more senior management changes expected to be announced in coming months

FA Basic:
PE 13, EPS USD0.145, NAV S$0.7376

TA:
Long term downtrend turning to sideway.
RSI as well as stochastic is picking up on thurs before the drastic fri drop
All MA lining down perfectly for shortist
Super high volume of 80 million

Looking at the technicals, I was wondering why I bought into noble in a trading range with STI already near the 3000 resistance and a downtrending line nearby. If I follow my plan and enter on the breakout of the line at 1.76-1.77, I wouldn’t be caught in this situation. So why? Partly, I think its complacency of believing the range can hold coupled with the bullishness of the market and noble is one of the few stocks that is not moving during this mini-run up back to 3000.

1.60-1.63 is the nearest daily support and as it confluence with the Fibonacci support, it might be able to hold. The earliest signal to get is a bullish reversal candle forming at the region. First thing first, I would wait for the trend line to break to time my entry. If a reversal is in the making, then the line should break before 22 aug with 1.60 holding.

But given the high volume, it will be good to see the volume subside before it happen too.

My friend has been very bullish about Noble reason is that the major shareholder is the Chinese Government!

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