30th Mar 2010 - A relook at Noble Group

Previously, I spotted a potential an inverse head & shoulders (H&S) for Noble. This week, my prediction is playing out nicely. I believe the catalyst was the VP joker who decided to sell all his noble shares at 3.1 to some BBs, triggering a gap down.

If you notice, there's a gap. This is what they call a 2 black gapping pattern and is bearish. It gaped down as expected. Today it closed at $3.14 forming a spinning top - indecisiveness again.

As the lower bollinger band meets the 100day moving average, coupled that the ichimoku cloud support (not illustrated) is just a few cents below, could this be the support level for a rebound?

RSI has also breached the oversold region; Stochastics shows an imminent crossover in the 20% percentile range. Putting aside the negative MACD which is a lagging indicator, if my take on STI is proven correct, then by virtue that Noble is a STI component, it will rebound tomorrow, sealing the inverse H&S formation.