Bottle half full:
After a 9% surge in poo two weeks ago, I would expect a 5% retracement. It actually pulled back by only 2% in two long weeks. After surged from 2.90 to 3.47, I would expect STO pulling back to 3.20, but ended the week at 3.33 - consecutive gains in x weeks.
TA vs FA:
WTI tried break the $50 resistance line twice in the past few days, but was quickly knocked down in both occasions. Fundamentally, US production and rig count data in the last several weeks indicates that shale oil would not survive under $50 poo, have to say most of them. Hours ago, IEA said that oil demand would increase by 1.5mbpd annually in 2017 and 2018. Where the 3mbpd would come from if oil under 50?
Third time luck. Another big draw down in oil inventory next week will push the wti above the 50 mark and brent above 53. STO's FCF breakeven price is 32, loads of money to be made at 53. See if the SP can get to $4 before the report date, 24 Aug.
STO Price at posting:
$3.33 Sentiment: Buy Disclosure: Held
