Last week I touched on STO as a bearish stock with a possible longer term short trade. This week it has broken north. What does this mean?

Some people may mistake this break up as the stock now being bullish. But if you look further in to the weekly chart you will see a significant level that should be taken note of before diving in long. Previously STO was consolidating under the 50% Fibonacci level which was expected to act as resistance. Though this has failed as resistance, there is the 62% Fibonacci level not too far off which is also a significant level that stocks often rebound off. If this level acts as resistance the peak created will still be a Lower Peak and STO long term is still bearish. So don’t be fooled by a small run up.

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