STI at support. What next?

Oh dear, oh dear. STI today dropped 65 points to end up just above key support of 2912 on the slew of bad news from US and EUROPE. If the STI fails to hold above this support, then we could be looking at the STI to drop another 100 points to about 2800.

NOL encountered stiff resistance at the 50day moving average and fell, together with the broad market, to 1.21. i had thought that the trend had reversed after it broke through key resistance of 1.25, but it fell victim to the broad selling across the market. It too has come to rest above its recent pivot low. If this level fails to hold, we are looking at a drop to 1.12.

The picture of NOBLE GROUP is similar to NOL. It also dropped to its recent pivot low and a break below this price level means that the downside price target is 1.11.

A chart a day - NOL

I thought i'll introduce a chart of NOL to you today. Why do I like it? Because it has traced a nice round bottom around the $1.00 level and broken up from both the medium and longer term moving averages. The stock is now trending nicely upwards. Support looks strong between $1.35 and $1.40. Near term resistance is $1.50. Global economy looks to be recovering. Japan seems to have rebuilt its manufacturing facilities following the devastating tsunami, US job numbers and economic numbers look promising. Looking at the way the price of NOL is behaving, it looks like shipping volumes are picking up.