Noble Group (N21.SG) rises 0.9% to S$2.25, extending yesterday’s 2.8% gain after a four-session losing streak, which Kim Eng says has pulled short‐term momentum indicators into oversold levels.

The house adds, the stock “looks poised to attempt the upside again following the recent correction.” It tips resistance at $2.40, and then $2.50, with support at $2.10, and then $2.00. 

CLSA says any near-term weakness is a buying opportunity. “Noble is an excellent proxy to rising commodity demand and prices.” 

 

“It says the company has growth, diversification and uses a low percentage of capital at risk to generate returns 220 bps above cost of capital.” The house rates the stock at Buy with a $2.55 target price, based on “conservative 15X 2011CL earnings.” 

 

Orderbook suggests a $2.27 cap today.