Safestay: Major downtrend line break targets 70p plus again

1 mins. to read
Safestay: Major downtrend line break targets 70p plus again

It would appear that after the latest news from Safestay (LON:SSTY) we can say that the company is a fan of good housekeeping.

Although I like to think I have an almost encyclopaedic knowledge of most companies on the stock market, alas this is not quite the case. That said, the clue is in the name as far as what hotels group Safestay does. In the wake of the update from the company today, it may be said that a fundamental stumbling block regarding progress for the company has been removed in the sense that the debt restructuring reduces both costs and uncertainties.

This can be seen in terms of the price action on the daily chart where there has been a significant positive development. Previously a stubborn trendline could be drawn in from as long ago as the summer of 2015, with this capping rally attempts in the interim.

The view now is that at least while there is no break back below the line at 50p, and especially the 200 day moving average at 47p we could be treated to significant further upside over the near term. The favoured destination at this point is regarded as being the former 2015 resistance area over the next 1-2 months. In the meantime any dips towards the 50p zone can be regarded as buying opportunities.

ssty chart

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