The Straits Times index declined less than 1% on Friday, and also closed near its session low. After the market close, 3% of the index constituents are technically "oversold" vs none of them last Thursday. Technically, the index continued to consolidate during recent trading sessions, but it remains under pressure below its strong resistance area, which is combined with both a negative 20-day moving average and a MT declining trend line. Furthermore, the daily RSI has already reversed down after being capped by its downside resistance. In these perspectives, the index should continue to pull back to test its nearest bullish gap area on 21 Dec, 2011, if breakout, expect a new sell-off to 2525 and then to 2420.

The HANG SENG index closed slightly up by 0.2% on Friday. After the closing bell, 51% of the index constituents are above their 20D MA (vs 44% on Thursday), and 37% of the shares are above their 50D MA (vs 40%). From a chartist view, the ST bias remains bearish on the index, as it stays weak below both its 20D MA and a key MT descending trend line, which plays as a strong resistance since early August 2011. Besides, the RSI has struck against its downside resistance, and is now below its neutrality area at 50%. Hence, a new pullback seems likely in sight to 16800 at first.

Noble Group (NOBL) is our selection of the day. From a technical point of view, the share price remains under pressure below its key resistance at 1.24, and also broke down its 20-day moving average recently. The RSI (14) has struck against its major resistance at 50%, and is now turning down, confirming ST bearish outlook. Moreover, the downside MT moving average still plays as a strong resistance role, which should push the price lower. Therefore, below 1.24, expect a new sell-off to at least 1.00 (a key psychological level) after a limited consolidation. 

Analysis - Pivot: 1.24 
 Our preference: Short positions below 1.24 with targets @ 1 and 0.905 in extension.

Alternative scenario: Above 1.24 look for further upside with 1.35 and 1.48 as targets.

Comment: technically, the RSI is below its neutrality area at 50.

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Source : Daily Warrants Charter - Trading Central