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.
