Entry for STT ListIVR TA LongI was asked to do a chart for this...

Entry for STT List

IVR TA Long

I was asked to do a chart for this on the weekend and I quite liked what I saw. At the time I knew nothing about the fundamentals of IVR so this is purely a TA pick. The first two charts are from the weekend so don't include this week's trades but the last one is up to date.

First the weekly to show LT trendline and the critical importance of the 18c level. It's enough to make wonder if there's some historical FA factor where 18c is a key number like a large placement? (turns out there was)

First thing I noticed was there's a large chunk of holders stuck in the 30-40c range so if it get's back to that zone. I reckon there'll be a fair period of churn before it can break 40c or require a serious news event.

The upside of that though is that there probably won't be too much overhead between 18c and 30c. It's just a matter of breaking that 18c line in the short term and cracking the trendline in the mid term.

Shorter term now... Two versions of the daily to show two different things... First the strong move from Aug 9 to Sep 14th has retraced to it's 61.8 fib and price has been stuck in a channel between that fib support and the long term resistance at 18c. That sort of meandering in midst of a strong move is what I tend think of as a coiled spring effect. The longer it goes on the more powerful the subsequent move is likely to be once it convincingly breaks out of it's channel. Overall if I had to guess on technicals alone I'd say up is more likely than down.
I'll move onto to a wider view of the daily to explain why.

On the daily it's looking like there are early signs of a trend change. We've had our first higher high, higher low, higher high sequence since the fall from 42c began. The last low is not confirmed yet but if it does make another higher high (which is the confirmation signal) it will also break the weekly downtrend line and be the first step in changing the weekly trend. Technically this would require a
higher high and retrace that held support above the DT line then a new high.

It looks like the stock is at a fairly critical juncture. If it breaks out of it's short term trading range to the downside that invalidate the above paragraph. But if it breaks up as I suspect it will then the game gets very interesting indeed. A nudge from an FA news event might be the catalyst for a significant change in fortunes.

note: Since the original version of that last chart it has actually crept up over the resistance line which tends to suggest the direction of the next move.

One to watch closely IMHO.