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Thursday, March 17, 2011

Short Term Trade: Noble and Neptune Orient Lines?

Looking at the weekly chart for Noble group.
-MACD and Stochastics show oversold
-13w & 21w EMA show a steady long term uptrend

As for the daily:

Noble has bounced off support at 1.98 thrice
MACD Histogram slight bullish divergence
RSI bullish divergence
Stochastic oversold

Was I to trade Noble, I'd probably buy in at $1.98 to $2.02, with a stop at $1.93 (Below the recent whipsaw) with a price target of $2.20, giving a risk:reward ratio of slightly less than 1:2 after factoring in commissions.


As for NOL:

The weekly chart shows a steady uptrend; however, 13w EMA is about to cross down from 21w EMA.
-No divergence seen in any of the indicators used.

Daily shows:

-Bullish divergence for MACD Histo and RSI
-Stochastics show oversold
-FI shows it's probably too early to pick a bottom
-NOL has bounced off support at 1.88 twice; 1.88 is probably a better entry range.

Were I to enter this trade, I would enter at the 1.90 range with a target of 2.10 and a stop loss of around 1.85 (below recent low) giving a risk:reward ratio of slightly less than 1:4 after factoring in commissions. 

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