ECR Minerals is currently presenting itself as one of the most traded stocks on the London market, something which is not surprising given the intense speculation associated with the stock much of last year, and of course by the way that trading around the 0.23p level, means that it does not take much for volumes to high.
Nevertheless, we are looking at a stock which is currently at an important crossroads technically given that this is the fourth attempt since the beginning of December to clear the all-important 200 day moving average at 0.22p. Ideally, what the Bulls are looking for now would be a weekly close above this downtrend breaking feature, to add to the positivity delivered by a double bottom for the stock at 0.15p during both November and December.
The best case scenario now is that we have a weekly close at the end of this week above the 200 day line and this leads to the top of a broadening triangle which has been in place on the daily chart since March. The 2014 resistance line projection target on this basis is towards 0.35p, a level which could be achieved as soon as the next 1 to 2 months. At this stage only back below the floor of the triangle/the 50 day moving average at 0.18p would be outright negative.
Written by Zak Mir, Head of DirectorsTalk TA. Zak Mir is one of the UK’s best known and experienced technical analysts, having over 2 decades of charting experience.
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