Noble: trading idea

Channel support broken. Can't say decisively yet it looks too out to be a whipsaw.

MACD potential bullish divergence negated with today's sharp downtick of both MACD line and histogram.

Next support at 1.67 then 1.57. Might get my foot in at 1.67 and add more at 1.57 should it be tested. Cut loss will be decided should noble get into my buy range.
profit target will be at channel support turned resistance, and then in the value zone between 13 and 21 day ema

Bought CapitaMalls Asia today.

As per my previous post here, I've kept my eyes on three counters. The two commodity counters have since risen. I will still keep a lookout if they do reach my purchase price target again; if not, there will always be other trading opportunities.

I did, however, buy CMA today at $1.71. Like I explained in the previous post, CMA is at support at $1.70. Buying at support is a good idea.

Indicators show oversold condition for MACD and stochastics.
There was also muted selling today.

Immediate resistance is at $1.78 should CMA have a bullish inclination, and that is where I will sell CMA off. Should CMA see high volume breaking of that resistance, I will sell off at the next resistance at $1.84.

Breaking of $1.70 support will see downside toward $1.66. Should prices drop below $1.66 at high volume, I will cut loss.

Trading Ideas: Noble, GAR, CMA

Noble:

Dropped on high volume today despite having a new SWF buying over 50,000,000 units of Noble Group.

Strong support seen at $1.98 to $2.00 region, which coincidentally coincides with the lower channel line.

This one looks good. I will enter should prices drop to that region.


Golden Agri:

Another counter close to a strong support.
Strong support eyed at 63c.
Seems to be consolidating around 65c level.
Will consider entering should prices weaken to 63c


CapitaMallsAsia:

this one is another close to support.



Indicators wise, all three counters paint a similar picture:
- declining MACD, the latter two in negative region whilst Noble in positive region
-Bullish divergence for force index
-oversold stochastics.

Of these three, Noble looks the most compelling should it reach it's target price (Longer term picture is of an uptrend as opposed to downtrend for CMA). I will revisit them again if they reach target price...

Potential Short Term Trade: Golden Agri

Let's first look at GAR's weekly chart.

We can see that GAR is on a long term uptrend, and hence, two choices here: trade from long side or step aside.

I will choose to go long on GAR, explained on the daily:

We shall look at the indicators first:
The Force Index (Long Term) shows a nice bullish divergence, indicating lack of power in pushing the price down.

The MACD lines show no divergence, they rise as price rise.
The RSI also show no divergence.
Stochastics show a deeply oversold condition.
However, oversold can remain oversold for a long time. Just look at Wilmar.

Indicators don't show any juicy bullish divergences, yet what I like about this potential trade:
1.) GAR is very close to it's strong support at 65c. Look at the line I drew.
2.) When GAR was bullish in 2009 and 2010, it bounced from value zone to upper channel line. Likewise, when GAR was bearish this year, it bounced between value zone and lower channel line.

Looking at the chart now, GAR is slightly below the value zone. I daresay we've resumed the bullish trend of STI now. Hence, prices should trade between upper channel line and value zone, in a uptrend.


Target Entry Price for this trade: 65c to 66c
Profit Taking target for this trade: Midpoint between Upper channel line and value zone @ 70c to 71c
Stop Loss: 61c, though I don't expect it to go there.