Is ECHO on the verge of an energetic breakout?

By Patricia Miller

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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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Industries:
Energy
Companies:
Echo Energy

Author: Patricia Miller

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.