Opportunity in Santos?

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

By Michael Gable 

This week is a short one of course which is also light on news flow. The main economic data will be the US jobs numbers on Friday, with Bloomberg analysts forecasting further growth of 207,000 in non-farm employment for March. After that initial flurry of activity in early March, the market is just consolidating here and some profit taking is taking place. As long as we can stay in the 5000's, we would be building up for that move towards 5350 which we have been anticipating.

Today we have an update on how the Santos ((STO)) chart is tracking in light of the depressed oil price.

 

Using a monthly candlestick chart, STO it appears to have completed a neat 3-wave decline from the 2008 high, where wave “c” is 1.61 times wave “a”. This essentially means that this could be a low point for STO. It is also showing signs of slowing momentum, so much so that we are almost getting buy signals for the longer term with STO. Because of the problems with predicting when the oil price will bounce, we cannot tell if STO will bounce strongly here or not. But even if it tracks sideways for a while, that low seen in January this year will take quite a bit of bearishness to surpass.

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)

Michael assists investors to achieve their goals by providing advice ranging from short term trading to longer term portfolio management, deals in all ASX listed securities and specialises in covered call writing to help long term investors protect their share portfolios and generate additional income.

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

Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities Pty Ltd is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). 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.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.

Click to view our Glossary of Financial Terms