Stratex International (LSE:STI) updated the market yesterday with its interim results and a summary of the progress made so far this year, as the company refocuses its vision for the future. From a technical analysis point of view, the stock is also shaping up to be of interest. The share price is currently in the doldrums, kicking around at 0.36p. This is well below the recent placing price of 0.5p and the stock appears to be hugging the bottom of a Falling Wedge pattern.
The stock has been in a downward facing channel since 2016 from highs of 2.6p at the beginning of that year. It’s the recent formation of the falling wedge that’s caught my eye and is the stocks best indication yet of a potential turnaround. A lot of the recent turmoil in the share price was a result of infighting between the previous board and some shareholders regarding a merger with Crusader Resources (ASX:CAS) towards the end of last year.
With a fresh board of Directors now in place, the company is refocussing its goals. Now things are more settled, newsflow is expected to be incoming on a number of the company’s projects and could begin to trigger a turnaround. The real breakthrough here would be a breakout of the falling Wedge pattern, which would currently require a close above 0.58p. The chart implies a good first target could be 1p.