Over the last few months, ST1 hit an all time high, underwent a correction, and is struggling to consolidate.
In hindsight, the telltale sign was the bearish engulfing candle on September 3rd.
[1] On that day, It opened at an all-time high of 0.45, only to close at 0.40 - a 10 per cent drop from the open. That was the end of the multi-month rally.
By the end of September, ST1 closed at 0.35, breaking the pink line of support.
[2] A few days later, there was another touch of the descending yellow support line (taken from intraday lows).
[3]In mid-October, a sudden bounce saw a testing of 0.40 - this was a key price line, being the close of the past bearish engulfing candle. But the daily candles could never close at that price,
[4] and things soon went bearish.
This became a downtrend for the rest of the month, and another touch of the descending yellow line, this time at 0.325.
[5] In the past week though, ST1 had taken another bounce off that line.
Looking at the upside, it first needs to contemplate some potential overhead resistance (blue line) around 0.39.
[6]Looking at the downside, there is still a gap between 0.32-0.325 (grey zone). This emerged in August, and hasn't been filled yet.
[7]
