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…

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