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Is ECHO on the verge of an energetic breakout?

I highlighted Echo Energy (LSE:ECHO) as a potential bounce play last week. Today it’s share price is threatening to breakout from the ‘Falling Wedge’ pattern that has formed since the beginning of this year. The Bollinger bands are squeezing ever closer, and RSI is strengthening towards 50 again. A positive breakout, and I would expect a move back towards 18p, while the next level of support on failure is 10.75p. At a near 30% discount to the recent placing price and with anticipated news flow due over the coming months – at the risk of repeating myself – Echo might be worth another look.

Author: Stuart Langelaan

Disclosure:
The author of this piece owns shares in the company written about above

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