Stilo style

Sunday, 1st July 2012 15:45 - by Moosh

Stilo International (TIDM: STL) says...

...very little in the way of news announcements and, therefore, most private investors ignore it because it doesn’t provide opportunities to sell on news, which is a shame since there are many companies out there which don’t say much but are still good for gain-making.

This is great from my point of view because it means the share is not ramped by rumour and allows the natural trend to play out in line with company fundamentals.

After last year’s rise from ~2p to just over 4p, there has been recent price movement upwards which can be reasoned with some basic technical observations:

1. Between 8 November 2011 (peak 4.25p) and 24 April 2012 (trough 3.125p), a continuation bullish flag pattern was set up with a breakout on 4 May 2012.

2. Prior to the above breakout, a large sell volume appeared on 24 April 2012 which coincided with the price bouncing off of the 200-day exponential moving average (EMA).

3. Relative Strength Index (RSI) bullish divergence signal appeared between the lows of 15 March 2012 and 24 April 2012 (lower price lows versus higher indicator lows).

4. Between 26 April 2012 and 30 May 2012 the price made a smooth slow stochastic oversold-to-overbought swing from 3.25p to 4.75p.

5. Hourly Coppock Curve exceeded zero from the end of May 2012 prior to the price surge to 4.75p.