Bought STLA on March 11

This long term {10 years!} level of $11-$12 might just hold as support after last week's close above the key $12 level.

This was originally the all time high in March 2015, after which the price returned to this level ~two years later in January 2017, then consolidated in a very tight range for 6 months, before finally pushing through $12 in July 2017 where a few retests took place over the preceding month, before it gapped up in August 2017 and rocketed up +100% to set a new all time high just 6 months later.

The real overhead resistance after this move up through $12 was actually the $18 & $22 price levels, both of which acted as support & resistance over the next 6 years.

With the exception of 2020, the price has bounced off of the $11.50/$12.50 price area 5 separate times {May 2019 / August 2019 / September 2019 / July 2022 / October 2022} before the current consolidation range formed for the prior 6 months.

Could this consolidation near this key level portend an impending price collapse? Possibly. But, the only drop of this price [last week] was bought up with a very large candle wick down as the stock traded 125m shares of weekly volume[!]...compared to average weekly volume of 25m for this stock {500% relative volume}.

I think this stock is worth at least a 'starter' position buying around $12.50, and setting a stop-loss order at $10.50 [4 ATR's below the current price, and 2 ATR's below the $11.50 level]... which would be a -15% loss on the position. If things go south, allocating 10% of my portfolio into this stock would translate to a -1.5% loss on the entire portfolio if the stop-loss were to be hit.

Trade confirmation