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 ( 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.


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.

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