General market direction? Above is a daily chart of the STI. We are still going sideways, with heavy resistance at 3032, initial support at the 50day moving average line at about 2960 and a much stronger pivot support at about 2910. Momentum has dropped again.
Let us have a look at a relatively strong stock in the STI. Above is a chart of Genting. It hit a high of 1.77 in late March before retracing to a low 1.65 in early Apr 2012. So support and resistance for Genting would be 1.65 and 1.77 respectively. Prices look like they will stay above both the 50 and 200 day moving averages. The trend is sideways and is slowly trending up.
Here is a counter which looked rather promising in late February and early March 2012 after it broke its previous high. But after reaching it's all time high of 2.25, it went sideways and eventually broke support of about 2.09 to head lower. It looks headed towards the 200day moving average of about 1.96.
Once a darling of the stock market, NOBLE GROUP, after hitting a high of $2.40 in late December 2010, has been on a downward trend. Things looked a bit promising in Oct 2011 when it managed to break the 200day moving average, but it fell to a low of $1.05 after it announced losses and the resignation of its CEO. The stock made a sharp recovery in early 2012 to reach about $1.54 and has been slowly drifting lower. Today's close looks like a candle stick hammer, and looks to signify that a bottom has been formed and a reversal looks possible. $1.23 is also a key level when price reversals have taken place. Let us see if indeed a bottom has been reached for NOBLE GROUP.
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