We covered the potential upside for Echo Energy (LSE:ECHO) back in February and the share price has continued to consolidate in the 12-13.5p range ever since. I’m quite surprised to see it still languishing at these levels, around 30% below placing price. While it successfully broke up from its last triangular encounter (blue triangle), the price has come back down into that area. Breakout from the newly formed red triangle is the next goal, with a first target of 18p once price action builds momentum. The charts general direction is still very much upward with higher potential targets longer term. Although the Relative Strength Index (RSI) is currently showing lack of interest sub 50, the flip side is that there is ample headroom for a decent move north from here.
Author: Stuart Langelaan
Disclosure: The author of this piece owns shares in the company written about above