In a post from May 17th, I noticed that a cup had been formed on...

In a post from May 17th, I noticed that a cup had been formed on the ST1 daily chart.^[1] At the time, I speculated if a handle was going to form as well.

In the last month, the handle seemed to have been formed, with a descending channel between 0.185-0.230.^[2][3][4]

Two weeks ago, the price began tracing up to the top channel of the handle. Last week's price action tested the upper trendline, and began edging above it.^[4]

Friday's acquisition of VPD was a kicker - it saw trading up to 0.250, before closing lower at 0.235.^[5]

That daily close was one pip above the handle top of June 3rd. If it closed one pip higher, it would have been double the cup low of 0.120.



Alternatively, ST1's chart also looks like a rise above a bull flag (but I'm not going to draw that - the diagram is busy enough) Looking ahead, the current price situation looks promising - but as usual, needs to confront its history.

What I mean by that - when it comes to M&As, ST1 has made several acquisitions in line with its long-term business strategy. Historically, the results have been mixed; sometimes the price has barely moved. At other times (especially for the larger acquisitions), the price has risen for a little while - only to trigger some profit taking, and occasionally a fall below a previous support level.

Either way, Friday's close of 0.235 was the highest daily close since September 2018, and given its acquisition trail, ST1's valuation is presumably more justified (at this price range) than it was 9 months ago.