May 7, 2009
STO Pennant Formation
By Planet Wealth
At the beginning of the year I did an analysis of STO. It showed strong resistance and high probability of running down at the 50% or 61.8% Fibonacci level. Where is it at now?
STO did manage to continue up past the 61.8% Fibonacci level, but not very far before encountering the current resistance. It is finding resistance at the down trend line that started in June last year. This is also an intersection of a resistance line around $17.30. Pushing the stock higher has been a well respected up trend since October last year. This is making a pennant.
Should STO break down from the pennant and close below $16.00 a retest of $14.80 support would be expected. A break higher with a close above $17.30 is likely to see a retest of resistance at $20.40.
Join our live trading room to improve your trading results: Click Here
Rent shares from the US market please visit our rent shares page.
Topics: Stock Charts, stock market | No Comments »
Comments
« Fibonacci Numbers in Trading | Home | Bullish Candle For XAO »
