Noble Grp – Losing steam or catching up its peers?

Trend: Downtrend, 20ma down, Macd below 0

Support: 1.55, 1.46

Resistance: 1.68 (20ma), 1.75 (50ma close)

Observations
Candlestick – Long white candle.
Histogram – 2Gs. No Bullish divergence is seen.
RSI – Close to 50%. No Bullish divergence is seen.
Stochastic –No Bearish crossover yet.
Bollinger Band – Closer to mid band.

Conclusion:
Noble grp has been overwhelmed by series of “bad” news of the past few months and has been one of the weakest commodities related counter in the market. Comparing to its peers, Noble grp has been underperforming. Many participants in the market stills hope that Noble grp will recover to be equivalent to the peers. Will Noble grp have the chance to recover currently?
Based on the trend, Noble grp remains in downtrend despite its strong rebound for the past few days. This rebound is now heading towards the resistance level of 1.68 where 20ma is closely situated. As this is a downtrend, there is a chance that lower high might be formed at the current resistance level of 1.68. But based on the current candle and indicators formation, there are still no signs of bearishness yet. Hence, there is a need for a bearish formation to occur before we can confirm that 1.68 resistance is holding well. If 1.68 fails to hold as resistance level, the next resistance could be at 1.75. If 1.75 is to be tested, the might be a chance that the trend could have change.
If Noble grp is to be resisted by 1.68 level and a lower high is formed, it downside side would seek 1.55 level as support. As it is a downtrend, 1.55 level might break and might trade towards 1.46 as the next support level.
In conclusion, Noble grp might still remain bearish as long as it stays below resistance level of 1.68. Currently, there are still not clear indications that 1.68 resistance level would hold. But if bearish signals are being formed at this resistance level, downtrend could continue which also signifies that it could be a good shorting opportunity.

What to watch out for this week:
1) Short when there is bearish signal at 1.68 resistance level
2) Trend might have changed if 1.75 is tested

Trading strategy to adapt right now:
- Short when bearish signals appear at 1.68 resistance level.

*Disclaimer applies