#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…
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 |
Echo S.P. 18th April 2019 Now 2.8p from September 2018 prediction.
Ouch. Took its time but that was a pretty major reversal