Keep An Eye On Santos

This story features SANTOS LIMITED. For more info SHARE ANALYSIS: STO

By Michael Gable 

The S&P500 Index followed through with what we feared last week, which was a rejection underneath the old support level and then a sell-off.

However, after making a new low for the year on an intraday basis last Friday, it has managed to recover in the past two trading sessions. The bounce hasn't been too impressive, but it does look like it wants to give us a little bit of upside here. Having said that, we are not convinced that we have seen the lows for the year.

If all of that sounds confusing, then it just confirms that market conditions right at this very moment are still quite tricky and we have to give it a little more time until we can see some higher probability set-ups.

For this week, we have a chart on Santos ((STO)).

Santos shares have been making higher lows for a while now, but since early March they have been unable to get above resistance near $8.40.

The range is starting to tighten up and this means that Santos is one to keep an eye on. A closing above $8.40 should be viewed as an upside break and that would therefore be a buying opportunity. Nearby support at $7.80 would need to hold.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services. 

Michael is RG146 Accredited and holds the following formal qualifications:

• Bachelor of Engineering, Hons. (University of Sydney) 
• Bachelor of Commerce (University of Sydney) 
• Diploma of Mortgage Lending (Finsia) 
• Diploma of Financial Services [Financial Planning] (Finsia) 
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2

Disclaimer

Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). 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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