STO (Santos Limited) || March 5, 2024
Master of Elliott Wave Analysis: Shane Hua (CEWA-M)
(Left chart) In the broader context, we observe a price increase following a Leading Diagonal pattern, which concluded at 7.98. Subsequently, there's been a three-wave decline labeled ABC(circled, green). At this point, it's uncertain what will occur next, as Leading Diagonals typically follow a decline. The support level is around 0.786, where the price is still holding higher. Therefore, we shouldn't dismiss the possibility of Santos Limited continuing to decline slightly, as indicated by the alternate wave count in purple. In summary, wave b (circled, green) hasn't yet concluded, so wave c (circled, green) will likely revert to the alternate wave count. However, I anticipate a Bull market with wave 3 (circled, green) moving higher, as long as the low at 6.57 remains intact.
(Right chart) Now, turning to the short-term outlook (4-hour chart), it reinforces the discussion. There are a few scenarios to consider here: as long as the low of 6.99 holds, the bullish outlook remains valid. Conversely, if the low of 6.99 is breached, we'll see the alternate wave count described in the broader context come into play.
Master of Elliott Wave Analysis: Shane Hua (CEWA-M)
(Left chart) In the broader context, we observe a price increase following a Leading Diagonal pattern, which concluded at 7.98. Subsequently, there's been a three-wave decline labeled ABC(circled, green). At this point, it's uncertain what will occur next, as Leading Diagonals typically follow a decline. The support level is around 0.786, where the price is still holding higher. Therefore, we shouldn't dismiss the possibility of Santos Limited continuing to decline slightly, as indicated by the alternate wave count in purple. In summary, wave b (circled, green) hasn't yet concluded, so wave c (circled, green) will likely revert to the alternate wave count. However, I anticipate a Bull market with wave 3 (circled, green) moving higher, as long as the low at 6.57 remains intact.
(Right chart) Now, turning to the short-term outlook (4-hour chart), it reinforces the discussion. There are a few scenarios to consider here: as long as the low of 6.99 holds, the bullish outlook remains valid. Conversely, if the low of 6.99 is breached, we'll see the alternate wave count described in the broader context come into play.