As someone said previously, Noble may go down to 10 cents.
Singapore
The Straits Times index rose 1.38% or 38.05pts to 2794.58 (day range: 2801.48 - 2767.44) on Wednesday. The index is above its 20d MA (@ 2792) and below its 50d MA (@ 2798). 30% of the index constituents are above their 20D MA (vs 20% the previous session) and 33% of the shares are above their 50D MA (vs 20%). From a chartist view, the index remains under pressure below the negative trend line since April 2015. Meanwhile the relative strength index is around 50 and lacks upward momentum. We maintain a bearish bias that as long as 2895 is not broken above, the index is expected to return to 2680 at first.
The HSI index rose 1.31% or 263.66pts to 20436.12 (day range: 20456.58 - 20217.07) on Wednesday. The index is below its 20d MA (@ 20639) and below its 50d MA (@ 20574). 47% of the index constituents are above their 20D MA (vs 23% the previous session) and 35% of the shares are above their 50D MA (vs 30%). From a graphical point of view, the index stays below the descending trend line and remains under pressure. Meanwhile the relative strength index lacks upward momentum. As long as 21000 is not broken above, the risk of a drop toward 18250 remains high.
Noble Group (NOBL) is our selection of the day. From a chartist point of view, the stock remains under pressure below the bearish gap formed on June 28. And the relative strength index is capped by a negative trend line. As long as the 0.215 holds as the key resistance, the downside prevails with 0.15 and 0.10 as next targets.