Santos (STO) bucking the trend | Michael Gable | Finance News Network

Santos (STO) bucking the trend

by Michael Gable

Santos (STO) has been outperforming the market in the last few days. When we tipped it as a buy to clients a few weeks ago, we noticed something very intersting on the chart. As STO went to a new low in March, the Relative Strength Index (RSI) was already trending higher. This is indicated by the solid blue lines on the chart. The last few days has seen STO breach its 6 month downtrend line. However, some traders would prefer to technically see it make a higher high. That is, a close above $14.32. If that is the case, then we may be seeing a similar pattern to that with ResMed which we discussed in Stock Watch recently (http://www.finnewsnetwork.com.au/archives/finance_news_network76575). If this shorter term downtrend in STO is about to be broken, then we should expect the longer term uptrend to resume. This implies a retest of last year's high of $15.80.



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