Divergence STO (any other Energy & Natural Gas ASX Listed)

markstone Updated   
STO LONG thesis is pretty simple.

Energy companies generally have a high correlation to their underlying commodity. In recent times a gap has opened up (illustrated by yellow line)

Oil & Natural Gas have moved higher substantionally YOY%

STO share price has come off, potential risk could be this seismic shift to green energy and flow of funds to those projects and companies.

My opinion is that this gap will close as oil and gas continue to rally in $$$.

Disclaimer - this is not investment advice, just an observation and should be taken as such. Do your own research.

Trade active:
Price action update.

STO price has crossed both short and med term trend lines.

look to break through resistance levels shortly.
Volume is starting to pick up nicely.

bulls are taking over, as production disruptions continue to effect the price.

should see energy companies bridge that gap thats opened up

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