Noble Group has reached our target from our previous post and inched above to 0.28 where it met its horizontal resistance. Many people has been asking what happened to noble group on friday and how now? We hope you all managed to escape from this sell down by shifting your trailing stop up.
On Friday, Iceberg released a report on noble group which could be a possible reason for the fierce sell off. Another reason also could be that it hit the horizontal resistance of 0.28 or people could be selling ahead of its results due on Monday (27th Feb) or taking profit on a friday. All these coming together could be a perfect storm in selling down .
So how now? How to trade this counter? We’re using the 200 days exponential moving average for this round and as you can see it’s acting as the support at 20 cents. Also a nice round number. If this breaks we could see 0.197 to 0.195 level. The uptrend has to hold in order for the trend to continue. At those levels we can look for entry for noble. We’re watching the uptrend lines that we draw as the support which could act as the intermediate support. Do note that their results will be out this Monday after market.