STI, NOBLE GROUP, NOL

Here is a look at the STI. So where are we now? We have been going sideways since mid February, but the trend is getting clearer and clearer. There is heavy resistance at 3032; the STI hit and failed to break through three times. However, the pivot lows during each retracement has been getting higher and higher, with the 50day exponential moving average giving a pretty good support. I thought we were headed towards 2900 when the STI closed below the 50day MA in early April, but the STI bounced very strongly back up the next day. MACD also looks to have bottomed out and is starting to turn up, both the 50day and 200day moving averages are still up, so it looks to me that it is only a matter of time before the STI breaks to the upside. I think slowly, the EU is coming to the realisation that austerity alone is not going to save their stalling economies. Let us see if the ECB will provide some sort of monetary stimulus to boost growth. I would like to talk about two counters that show signs of turn-around.

NOL's share price was pretty beaten down from 1.515 to 1.195 from mid Feb 2012 to late April 2012. It's share price has since rebounded very quickly within the next three days and with a steady rise in volume. Short term indicators show that there is a high chance that a bottom has been formed and that the upward momentum is steadily building up. Initial resistance is at 1.32, support is at 1.195.

Above is a daily chart of NOBLE GROUP. I had expected it to head towards 1.11 after it closed below 1.20, but it staged a strong rally yesterday on high volume and closed higher today as well. The MACD is also starting to turn up and I also suspect that a bottom has been formed. Initial resistance is about 1.30, support is at 1.18.