I know the week hasn't finished yet.. but i couldn't discount...

I know the week hasn't finished yet.. but i couldn't discount the developing setup on the weekly chart correlating to the same story as the market depth (25c sell orders piling up). All indications are that we may need a breather before we launch a real assault on 25c.

Strike Energy (STX.ASX) - $0.24 – 11/10/2012

Weekly Chart - 3 Years

STX has had a great run over the past couple months almost doubling to a high of 25c. This price level looms as significant resistance given it has just completed its range from the prior strong move up earlier in the year.

Both the RSI (73.81) and Slow Stochastic (91.83) Indicators are looking a bit toppy and are sitting in overbought territory.

Strong long term support sits around the 20c mark with a possible pullback to this area creating a good buying opportunity.

If the pullback to 20c occurs, positive news flow from Bigham-1 production testing and the Palta-1 exploration well (the target prospect is estimated to also map into the adjacent WA-460-P of which STX has a 1/3 interest in) over the coming months could provide a catalyst for the resumption of the medium term uptrend.