Light volume after oil retraced a bit o/n on comments from Kuwait / API data and some profit taking. retrace wasnt that major given at 35 on Friday last
This stock in the short term is very easy to sum up - its a crap shoot.
We all know right now the SP is completely dependent on the price of oil. oil up Sto up oil dwn STO dwn. Thats not a good thing because now as soon as there is word from OPEC meeting nxt week then dependent on the outcome is where STO will be. There is no buying interest at all over $4 unless signs are positive on oil.
if bad news from OPEC then STO will retrace along with oil. The fundamentals and management of STO are rubbish so a retrace wld be rapid. Good news wld push back over 4$ IMO but whether there wld be buying interest is another thing - Morgans down graded the SP to under $3 and most others are under $3 unless oil recovers. We have a situation where the fortunes of this company are completely out of the hands of management and firmly in the hands of oil price in the ST
The issue we have is that OPEC need to get Iran to sign up to something otherwise no other country is going to follow. So I suspect we may get positive news from next week but it wont be a firm agreement it will be more on the lines of talks continue but we feel positive....blah blah blah. I think they will be very cognizant of the sensitivity of mrkt to comments they make. IRAN have nothing to lose at all so we might see some compensation to them if anything is to get across the line
Thus I think the SP is just going to drift around until nxt week and then boom - one side of the equation is going to be very happy. If gambling is your thing then this is it - but on this occassion the downside risks far outweigh the upside. Its a leverage play and it bites both ways. This is ST view only. I will probably bracket my trade so first reaction i will be out one way or the other but lets see what unfolds in nxt few days - still in the money as avr cost at 2.80 - my saving grace today BOQ / BXB / NAB / SHL and TWE - there my favs at moment - now time for bed
whats price action telling me today...
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Last
$7.81 |
Change
0.140(1.83%) |
Mkt cap ! $25.36B | |||
| Open | High | Low | Value | Volume |
| $7.80 | $7.82 | $7.76 | $53.77M | 6.831M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 43486 | $7.77 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $7.81 | 39967 | 2 |
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| Last trade - 16.10pm 16/08/2024 (20 minute delay) ? |
| STO (ASX) Chart |