NOBLE GROUP: Whither its stock direction?

NOBLE montage9.15 The Noble Group stock chart looks interesting here, after its second attempt at testing the low of 0.435 late August.

The rebound for the stock looks good consolidating near the upper trend line of the descending channel.

If the stock is able to build and consolidate a base here, we may see an attempt of the next resistance at 0.63c.

Failure to break above this descending channel may see the stock pressured to retest its 0.435 cents low again.

Two opposing forces continue to exert authority on the stock's price.

NicholasTeo3.15 Nicholas TeoOn the downside, there is continuing skepticism over the firm's accounting practices and balance sheet concerns. This remain a key drag on the stock's performance.

The persisting levels of the company's CDS's (5-yr debt) at an elevated price highlights the anxiety of the company's creditors.

On the upside, however, the recent announcement by Olam on their stake sale to Mitsubishi Corp has put the spotlight on commodity plays and the possibility of M+As there.

With such a large degree of outstanding stock on loan to short borrowers, Noble's share price may enjoy a boost from any short squeeze that may occur as nervous 'shorts' pare their exposure.

Counter Name	Last	Change
AEM Holdings	2.370	0.030
Best World	2.460	-
Boustead Singapore	0.945	-0.015
Broadway Ind	0.133	-
China Aviation Oil (S)	0.920	-0.005
China Sunsine	0.420	0.005
ComfortDelGro	1.480	-
Delfi Limited	0.895	-
Food Empire	1.260	-
Fortress Minerals	0.300	-0.005
Geo Energy Res	0.305	-0.005
Hong Leong Finance	2.500	-
Hongkong Land (USD)	3.140	0.020
InnoTek	0.550	0.030
ISDN Holdings	0.305	-0.005
ISOTeam	0.044	0.001
IX Biopharma	0.042	0.001
KSH Holdings	0.250	-
Leader Env	0.047	-0.004
Ley Choon	0.045	-
Marco Polo Marine	0.067	-
Mermaid Maritime	0.139	-0.001
Nordic Group	0.305	-0.005
Oxley Holdings	0.088	-0.001
REX International	0.133	-0.003
Riverstone	0.795	-0.020
Southern Alliance Mining	0.430	-
Straco Corp.	0.485	-0.025
Sunpower Group	0.210	0.005
The Trendlines	0.067	-
Totm Technologies	0.022	-
Uni-Asia Group	0.820	-0.005
Wilmar Intl	3.470	-0.030
Yangzijiang Shipbldg	1.740	-0.010

Counter Name

Last

Change

AEM Holdings

2.370

0.030

Best World

2.460

Boustead Singapore

0.945

-0.015

Broadway Ind