If San Telmo Energy has been able to end the Cup formation that has formed since March of this year (see previous posts) is not easy to answer. First we have seen a high of 0.54 in the first week of September. This high equals the high of the beginning of the cup. On the other hand, by having a week close of 0.48 the cup is not really finished. A close above 0.54 would have been a clearer signal.
Last weeks seemed more like a consolidation of the recent high. At the moment a bullish flag is being formed. STUOF has already broken out of the short triangle, but this break out needs a confirmation. This current week we already successfully tested the bottom line of the triangle with the low of 0.42. Then we went up again and broke out over the crossing resistance lines at 0.43.
As long as we have this week closed at or above 0.43, we still have a bullish pattern. A confirmation would be if we next week would go higher as this week’s high, which at the moment lies at 0.449.
But actually I am more looking forward to going above the 0.45 this week. Anyway, this or following week, a break out would at least have potential to go to the recent high at 0.54. On really good news, we might go straight trough this resistance and enter the sixties again.
A week close below 0.43 would cancel the bullish setup, but that also needs a confirmation next week. So follow this week’s volume closely, as a low close on low volume does not mean so much.
I am long on STUOF, so I do expect the pps to go up. Maybe now would be a good point to add to your portfolio. You might want to have a stop loss at 0.40. This stop is on a weekly basis, daily fluctuations might stop you out.
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