Trends and Targets for 27/09/2018

#Echo Energy #DAX #NK225 Few things are quite as amusing as watching someone else making a fool of themselves. Such as we accomplished in our Esure report!

Our efforts to remain “pure” with numerical analysis unsullied by risk of opinion ensured we didn’t bother checking the news feed for an explanation of Esures price rise. A major oops ensued, due to the company being “under offer” since mid-August. Despite the share remaining trading, it seems safe to assume the market does not intend the price to grow higher. We wasted an hour on the analysis and readers wasted 5 minutes reading it and as a result, our apologies along with a plate of humble pie are needed.

 

In case anyone hasn’t guessed yet, we’re working through the alphabet with our mid week reports and the latest victim for analysis is Echo Energy (LSE:ECHO).

To get the headline news out of the way, the price has experienced a GaGa motion, a GapUp and GapDown which are circled on the chart. Amongst FTSE 100’s and 250’s, we often regard this nonsense as proving a fairly reliable method to divine the markets intention. Against AIM’s, such price dance steps can prove less reliable, due to the increased incidence of manipulation gaps.

In the case of ECHO, if we choose to tar the price with a similar brush, it’s probably going to bottom at 3.15 eventually. There’s a fairly high chance of a bounce at 5.3p which will, if broken, prove fairly short lived. This is the GaGa effect in action, making any form of Long position quite risky at present. The price needs close a session above 13p to foul up the argument for a drop, something not entirely unreasonable given it’s currently trading at 11.5p.

What are the implications, if a miracle occurs and it closes above 13p?

We’re looking for recovery to an initial 14.8p with secondary, if bettered, at 18p.

For now, we lack optimism! At least we avoided any puns about the name as everyone probably heard them a few seconds before…

Chart goes here

FUTURES

Time Issued

Market

Price At Issue

Short Entry

Fast Exit

Slow Exit

Stop

Long Entry

Fast Exit

Slow Exit

Stop

Prior

10:29:56PM

BRENT

81.16

10:32:13PM

GOLD

1194.87

10:34:49PM

FTSE

7489.36

‘cess

10:37:16PM

FRANCE

5501.5

‘cess

10:40:50PM

GERMANY

12349.7

12327

12291

12248

12392

12419

12433.5

12625

12325

10:43:36PM

US500

2906.97

Success

10:47:34PM

DOW

26399

Success

10:49:08PM

NASDAQ

7563.37

Success

10:51:14PM

JAPAN

23865

23834

23798

23715

23980

24047

24160

24702

23580

 

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