NOL: CIMB has Technical Sell Call. House note that prices fell sharply to a low of $0.98 in Aug before trading sideways for the last two mths or so. It has formed a triangle pattern, which is a continuation pattern. It means that there is likely one more downleg ahead.
The long term technical landscape remains bearish with its MACD now starting to turn down again after testing the zero line while its RSI has not breached the 50-60pts mark. Overall believe that prices are likely to make its way lower soon, likely to test $0.90-0.94 levels. Aggressive traders may opt to go short with a tight stop placed above $1.19 or $1.22. Taking out the $1.22 would mean that prices could rebound towards the upper end of its downtrend channel resistance at $1.30.
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