NOL – Similar movement as Ezra

Trend: Downtrend, 20ma down, MacD below 0

Support: 1.75, 1.84 (200ma close)

Resistance: 1.95 (100ma), 2.03 (50ma), 2.07 – 2.13 (Falling window)

Observations:
Candlestick – One white candle close at 100ma
Histogram –3G, No bullish divergence is seen.
RSI – Slightly above 50%. Bullish divergence is seen.
Stochastic – Bullish crossover already seen around 30%.
Bollinger Band – Close to mid band.

Conclusion:
Nol seems to exhibit similar movement like Ezra which caught my interest too. The slight difference is that NOL got resisted by 100ma which confluence with the horizontal resistance. Hence, if it is able to break this strong resistance, it could only means that this counter is more bullish comparing to Ezra. Let’s look into its chart details.
NOL’s chart still remains downtrend based on yesterday’s chart. It only exhibits bullish divergence in RSI. A positive aspect of NOL is that it did not break 200ma as support and has been trading above it. This indicates that its weekly trend is still bullish. Hence, current downward movement could be merely a correctional movement.
If the breakout of 1.95 occurs with high volume (above 19mil), the upside could be sustained, which could seek 2.03 as immediate resistance which confluences with 2.03. But this breakout could mean the trend has change to uptrend as a higher high will be formed after the breakout. Looking forward, if the breakout is sustainable and the price got resisted by 2.03 level, there will also be a possibility that the price will retrace to this resistance turn support level of 1.95 to form a higher low to continue its uptrend movement.
However, if NOL fails to close higher than 1.85 today, it could indicate that the trend might be forming a sideway. The sideway support could be formed at 1.84 or 1.75 level. 1.75 level will be a key level to determine whether the downtrend will continue.
Currently, the indicators are still on the bullish side as there are no signs of bearishness yet. Hence, with slight conflicting signals with its trend reading, it will be better to be cautiously bull on Nol.
What to watch out for this week:
1) Breakout of 1.95 with high volume (more than 19mil)
2) Breakdown of 1.75 support

Trading strategy to adapt right now:
- Go long only when 1.95 resistance breaks with high volume.
- Go short when 1.75 support breaks with high volume.

*Disclaimer applies