Chart Alert – Santos (STO)

sto-dy-nov-16

For most of 2016 the share price of leading Oil and Gas Explorer and Producer Santos has languished between $4 and $5. The villain in  its fall has been the persistently low price of crude oil.

In the first half of this year, the share price climbed to form a double-top at $5, before sagging again.

Chart-watching investors will have already noted an impulsive move higher since 07/11/16 which has penetrated the down trend-line, and now has broken above support at $3.90.

These features suggest a more favourable outlook for the company, and would be consistent with a desire by OPEC countries to see higher prices for crude by cutting their production.

Retail Investors should be wary of relying on technical analysis alone, and to first seek the advice of a qualified financial advisor.

I have been a shareholder in Santos before, but am not at present. I intend to reconsider this position.



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