Santos topping out, buyers be patient

by Michael Gable

The trend in the last 12 months has been very strong for STO. We have seen some very nice impulsive moves up on good volume and the pullbacks have been very corrective. There was always going to be strong resistance near $16 and we saw the share price reach an intraday high of $15.80. When it reached that high a couple of weeks ago, you will notice that it was on the back of a solid move on good volume. Firstly that concerns us in that it may have been a final exhaustive move for the time being. Secondly, you will notice that in the last two years, the peaks and troughs in the share price have coincided with sell and buy signals respectively on the RSI (circled). Once again we have seen a sell signal on the RSI. We could get one final retest of $16, but chances are that we should expect STO to ease back now. We are looking at support around $13.50 at which point it would be a buying opportunity. Below is a weekly chart.




Disclaimer

Disclaimer: Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.