Our ALGO engine triggered a buy signal on STO into yesterday’s ASX close at $5.50.
The “higher low” pattern is referenced to the $4.80 low posted on March 15th.
The share price has dropped over 15% since the company rejected a $6.86 per share takeover offer from Harbour Energy last week.
Since then, there have been internal discussions about a higher takeover price, as well as whether the current management can use their strong balance sheet to increase earnings restore a fully-franked dividend.
Technically, we see solid support near the $5.30 area and initial upside resistance at $6.10