Eco Atlantic Oil and Gas (LSE:ECO) has seen its share price come off 25% from highs of 41p in February. A horizontal line of support meets an upward trendline formed from previous lows, providing a potential cushion at 27p. Such a move will likely take the Relative Strength Index (RSI) below 30, indicating the stock is oversold. Should this level fail there is further support at 21.8p. The price action has been forming a widening cone shape, with upside towards 45p potentially available should recent highs be surpassed.
Author: Stuart Langelaan
Disclosure: The author of this piece does not own shares in the company mentioned
