With Christmas Spirit

Stock Watch

by Regina Meani

Market analyst Regina Meani discusses Spirit Technology Solutions.

Their mantra is Do IT with Spirit and are prepared to challenge the old tech and IT ways to deliver new solutions, platforms, products and services. Spirit Technology Solutions (ASX:ST1 24.5c) aims to partner with businesses to improve the way their technology operates for an overall better Australian system.

The share price has been rising within a well-defined upward channel from early 2017. The trend has allowed a few breaches which has produced wide price swings with a low at 8c in 2019 (outside the channel) to a high point within the trend at 45c in September 2020. In reaching 45c the price had pushed momentum into overbought and the price topped out through the end of 2020 into early 2021.

Falling into decline in May 2021 the price slid lower to reach a potential double turning point in October and December at 21c. After the first low in October the price rallied strongly to 29c but was unable to break the downward drift from May falling back to re-test the 21c low on 7 December. The price has rallied from the second low point but has halted in a pause action at 24.5c. This action may continue with the potential for the price to break up and retackle the 29c resistance.

A rise through 29c would see the price regain the upward channel with the potential to head towards 32.5-33c and then towards 37.5-38c and possibly beyond to test the 45c level and higher within the upward channel.

The risk to this scenario would be a fall through the 21c support with an early warning at 23c.


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