A Healthy Correction For Santos

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

By Rudi Filapek-Vandyck

The TechWizard has observed shares in LNG producer Santos ((STO)) forming a second close reversal week, which now means everybody who bought the shares above $16 in the past two weeks is in the red. He suggests this may imply more weakness ahead as more and more short term investors may decide to look for greener pastures elsewhere.

It is the Wizard's view that Santos shares remain in a solid, longer term uptrend, but at present a correction is taking place and in case the share price breaks below $15.31 (last week's low) there will be more selling on the back of triggered stop losses, he predicts.

The Wizard is of the view the correction in Santos shares will be short-lived. He describes it as "healthy" and as a precursor to the next leg up.

The Wizard has informed us he at present does not own shares in the company.

The TechWizard is the pseudonym of Scott Morrison, whose experience in financial markets exceeds twenty years. Morrison operates his own website nowadays at www.techwizard.com.au. All views expressed are the TechWizard's, not FNArena's (see our disclaimer).

Technical limitations

If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.

Click to view our Glossary of Financial Terms