“Shares in Santos have been heavily discounted due to government intervention in the gas sector, a lack of asset sell-downs, and approvals in the Barossa,” Michael said.
“The share price has struggled over the past year but we’re finally seeing signs that it might get moving again.
“Since the end of last year, STO has been trading in a range between about $6.80 and $7.40.
“What is interesting about the Santos chart (see below) is that the past several weeks has seen it clearly spend more time near the top of the range.
“This could mean that STO is close to making an upside break.
“There is an area of resistance between $7.40 and $7.50, which Santos is now stepping into.
“If it can push past the sellers here and continue on out of this range, then that would be the buy signal and could lead to a new uptrend,” Michael said.
“A drop under the May low would be a negative,” Michael said.
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