STK - ASX Charts - Is there more steam left ?

3-Nov-2023 : Keeping it Simple with Price Action & Technical Analysis.

Since 18-Nov, STK reached a TOP and then started consolidating. I was in a dilemma whether to SELL or HOLD, especially looking at the bearish divergence in RSI while the price remained in a consolidating zone.
This post is to jot down my thoughts, as to why I remained invested and hence got the benefit of patience. Look at the charts that follow
below this one.


I had to go down a level deeper, into monthly timeframes. And what it showed was pretty exciting and the reason to HOLD with a nice SL rather than SELL.

Observations from Monthly Chart for STK;

* Since 2013, there has been a STRONG resistance at the 0.1 levels. It can be seen, that it was tried to be broken several times (RED arrows)
* The WHITE line is a 40 period monthly MA. It can be seen trending UP since 2021, with also a BULLISH divergence in 14 period RSI
* During the same period, the monthly volumes have been huge and increasing... with a huge jump in Oct'23.
* In Sep'23, the price majestically broke the 40 MA, and was followed by that huge volume in Oct'23. This is what we call ELEPHANT STEPS.
* The close above 0.1 was with a HUGE green candle, and RSI also crossing the trend line that can be drawn on the RSI Tops.

So I had reason to believe this would sustain its UP trend, and at 0.1 was a GREAT but with a SL just a notch below.