NOL formed a higher low on 28 March although it has yet to form a higher high. The impetus for this blog post is NOL’s closing above the 20dMA for the first time since 10 March. Together with some other observations, it seems that NOL could be coming out of the doldrums.
Some might remark that NOL promptly sank on 11 March and what makes it different this time? Could not the price sink next Monday? Indeed, it could. This is especially so when we realise that price closed exactly at resistance provided by the 38.2% Fibo fan line.
However, I feel that things are looking up because, on the daily chart:
1. The MACD is higher now than it was on 10 March although it is still rising in negative territory.
2. There has been a prolonged period of low volatility which has resulted in tightening Bollinger bands.