STO.AX breaks key support level
Santos Ltd (STO.AX) Technical Analysis Report for May 17, 2018 | by Techniquant Editorial Team
STO.AX ended Thursday at 6.20 tanking A$0.12 (-1.9%). This is the biggest single day loss in over two months. The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 6.25, the market confirms its breakout through the previous session's low having traded A$0.09 below it intraday.
Daily Candlestick Chart (STO.AX as at May 17, 2018):
Thursday's trading range was A$0.16 (2.54%), that's above last trading month's daily average range of A$0.11. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being below average.
Breaking below the key support level at 6.27 today, it is now likely to act as resistance going forward. After trading as low as 6.16 during the day, the stock found support at the 20-day moving average at 6.17.
While the share is currently in a short-term down trend, this could just be a correction, as the medium and long term trends are both positive.