TSO starting to look interesting once more with the gap back to 19c now closed and a period of consolidation at play. Arguably TSO has held up relatively well since late Feb when the gold price capitulated from US$1,800 to US$1,695.
I was clearly early with my initial purchase here at 24c maybe hoping for support to hold whilst a number, but not all indicators were in deep oversold territory.
Since then we have seen price action move lower to close the gap back at 19c and print an oversold signal on the daily RSI, whilst trying to establish a bottom in the stochastics and MACD.
Signs are now pointing to a number of positive crosses taking place for TSO and my expectation is that once we see a close at 21.5c+ the move back to the topside of the current range of 26c will take place. An increase in volume to effect this move would be ideal.
This will likely play out pretty quickly.
With sentiment in the gold space in the toilet at the moment, without POG making a move to US$1,750 - $1,800 range in the immediate short term to fuel the interest the company is going to need to deliver something of decent value to warrant the interest on market is my guess.
Lower end support needs to hold here, otherwise we are in for a longer period of distribution and consolidation before we can expect a sustained move higher.
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