Stock: Service Stream Ltd (SSM ASX)
Coming from a base of $0.25 in May 2015, the ASX listed Service Stream is currently changing hands in the $1.50’s, rewarding those who have held it over the period with a healthy 6 x return (aka a 6-bagger). Narrowing the focus to the price action over the past 12 months, we can see the significance of the $1.24 level in a textbook example of previous resistance becoming new support. Price around this level has followed the pattern of test, test, breakthrough, re-test, re-test, re-test. The last re-test, the fifth and final touch of $1.24, buyers stepped in and price exploded higher to take out and close above the $1.51 level. Subsequent weeks trading has seen a re-test & hold of $1.51 confirming the level as new support. Despite $1.51 holding firm in the near term, prices have not followed through form the recent test of the level and look set to roll over.
What Does Service Stream Do?
Service Stream Limited (SSM) specialises in providing essential network services, including access, design, build, installation and maintenance of copper, fibre, and wireless telecommunications networks. The company provides these services to a range of private and public energy and water entities nationally.
To access a list of company announcements, financial summary & dividend history – Click Here.
The Barons Brief – Official Summary
Given the sheer power & impulsiveness of the move off $1.24 to take out $1.51, combined with the lack of follow-through from the recent test of $1.51, a dip back below $1.51 toward $1.24 prior to the next leg up would not surprise.
The Baron remains ‘on watch’ for a buy entry back under the $1.51 level.
A break & close below the major support level at $1.24 would be negative opening the door to lower prices in the near term.
Want More Trade-Ideas Delivered To Your Inbox Each Week? – Get On The Free Mailing Here
Disclaimer: The information contained in this article has been prepared solely for the entertainment & educational purposes of the reader and does NOT constitute financial or investment advice. Any examples presented in this article are for illustration purposes only. No person, persons or organisation are authorised or permitted by the authors to take any action on the reliance of this information without first consulting an authorised, accredited financial planner or advisor. The authors are entitled, at their sole discretion, to hold positions in the above-mentioned stock/s. The authors accept no responsibility for the accuracy, completeness or timeliness of the information contained in this article. Disclosure – No positions are currently held in SSM – ASX at the time of publishing this article (This is a disclosure and NOT A RECOMMENDATION).