Noble looked interesting for a short term counter-trend trade. It has a bullish harami the day before and 1.05 seemed to be a strong support that extends all the way back to 2011. The founder and CEO have bought back the shares at around 1.08 in the last few days and that could provide an interim support for this counter. The reasons for its huge drop last week was due to "below than expectation" results and that one of its 3rd largest shareholder, Harry Banga,
placed out $200m worth of shares.
Daily Chart
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| Daily Chart |
The target for the rebound will be around 115-118 with a stop loss below 1.02. Given that this is a counter trend trade, it will be wise to be nimble and much will depends on how the US markets perform this week.
Weekly Chart
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| Weekly chart |
You can see that it took 12 weeks to move from 1.08 to 1.35 but only 2 weeks to move from 1.35 back to 1.08.....
looks like lately the picture of the post can't be seen.
ReplyDeleteI'm using IE9 on windows 7
curious to find out what your opinion of Olam?
ReplyDeleteSC, thanks for the feedback. I have rectified the problem by paying $. haha...
ReplyDeleteHi Anonymous, first of all, i am not a fan of Olam. I do find the accounting practice on the aggressive side. The company is always on the acquisition path and issuing debts, thus it is inevitable that its debt ratios wont look good. Muddy Waters has been pretty "successful" in bringing down Chinese companies, thus to take on a Singapore company either means that he has ran out of large Chinese caps listed in the US to play with or he really find Olam a lucrative target. We shall see if they release their research report on Olam but i have no doubt he works in conjunction with the hedge funds. He probably visited Olam during the recent SALT convention held in Singapore for hedge funds for the first time outside USA.
• Trade unions to make case for Coal India Ltd's two to three lakh contract workers’ wage hike in the range of 15-20%.
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