NOL’s channel comes to an end

Afternoon everyone,

I have not seen many interesting events popping up on charts over the last two weeks which explains my inactivity. Anyway, I have a few charts of NOL  for today.

I was generally bullish on NOL’s share price last year, and also some of ther other shipping counters. I liked the good uptrends – which can be seen as huge upward parallel channels as well – that the shipping counters were in. However, channels wil have to come to an end soon, which is probably the downside of trading this pattern. In NOL’s case, the parallel channel I identified has come to an end after a 18% drop from the high – that doubles up as the pre-crisis level – of $2.40. Now that I have established a slight bearish orientation, I take out the fibonacci retracements tool to look for important psychological levels. Immediate support is right under price action at the moment – $1.88 to $1.90.

NOL does not look good at all. In fact, the range of $1.92 – $2.00 that NOL has been trading in for the last few weeks looks like a consolidation phase before preceding a significant move. I will be surprised if NOL stock price flies up in the weeks ahead. I see no reason on the chart for that to happen. As such, I will be a bear on NOL. The immediate support level, though, should be respected for now as it is quite strong. Not only is the $1.90 region the 38.2% level, it is also a resistance – turned – support level (look at red and green arrows).

The weekly chart does not look good as well. I do like how the geen support line I have drawn looks even better on this weekly chart. Once NOL breaches this support level, all long bets are off. I do not like pure speculation, but there are no strong support regions below $1.90; so NOL may just touch $1.70, or even $1.60 by the end of the year.

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

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