On 14 Feb, I wrote that Noble Group had broken up into Stage 2 above $0.21 and the odds are good that it could rise to an initial target of 0.30 (40% upside). See my previous post here.
Less than 2 weeks later, as Noble was progressing nicely and hit a high of 0.28 on Friday ( just 2 cents shy of the projected target) when out of the blue, it started selling off aggressively. In fact, the selling was so ferocious that it plunged all the way to 0.200 before it staged some rebound to close at 0.225. A quick search for news showed the reason for its sudden plunge: CNBC: Noble shares take another iceberg on the chin
If we had trailed our stops, we would have exited at a much better price than 0.225.
Unforeseen things could happen and it is always a good practice to have stop orders in place after we entered a position. Do check with your broker how you can trigger an exit though a 'stop limit' order.
So what now for Noble going forward? If you had not already staked into the stock, then it is probably better to look elsewhere as this stock has been 'maliciously' targeted by Iceberg Research and it is possible it could succeed.
However, for the sake of technical discussion, there is a chance that Noble could survive this latest attack as the chart dynamics have changed since the 1st attack by Iceberg 2 years ago.
A look at Noble Group's larger picture (weekly chart dating back from 2014) showed that
Noble was already a weak chart trending down as Iceberg launched its first malicious attack. As the attacks continued throughout 2015 and 2016, Noble's price dropped a whopping 90% to a low of 0.112 in September last year.
But for the past 6 months, Noble Group was no longer in a downtrend but had been building a steady flat base. Perhaps at below 20 cts, it has possibly reached a price point where value investors are starting to get interested (see the huge volume accumulation there). Iceberg's attack now might not be that effective in creating fear for long.
It would be interesting to see if the 'optimistic' technical picture will hold out. I am still thinking it might not breach the 0.197-0.200 support but if it does, then all bullish momentum bets are off.
