STX hit 39c on the day the deal fell through.Speculation saw it...

STX hit 39c on the day the deal fell through.
Speculation saw it rise late last week and today I would say is a nothing day for them in real terms.
One could expect some selling due to potential profiting by buying into TPD and less than .5% SOI change hands compared to 5% of ours.

I draw different charts with trendlines for different possibilities and the one below I feel suits the potential if the deal goes through as the extra $35m FCF for them will be significant in progressing the drill program.
There's support at 40c and some resistance at 50c.
The channel projects down to 36c and up towards 60c and currently closer to the bottom which reduces risk imo.
Breaking to the upside of the trendline will see an accelerated SP increase which is a real possibility with cashflow, drill results and T/O possibilities.
STX has less resistance than TPD and would not be surprised to see it in blue sky and then there's no limits and anything is possible.

I'm not a fan of the deal but TPD has dragged its feet for way to long so one must also ask why? The market has little confidence in the management imo.
I don't like being stuck in a company that ticks all the boxes, has everything going for it but doesn't get re-rated. Its a red flag imo.

Shalom