ECIL

[David Randolph]

Long term chart:



Medium term chart:



This ascending triangle gives me a projection for ECIL to go to $14 over the medium term. A slow but secure bet, I think. Many people lye (or lie? I'm sorry) but the chart doesn't. It's pure money making the chart and money can't lye.

I'm buying the open.

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[David Randolph]

ECIL

[David Randolph]

ECIL may come back to retest the $9 level, prior resistance, now support. No big deal ...

[David Randolph]

The stock is retesting the old highs, prior resistance, now support.

[David Randolph]

ECIL didn't close above $9 as I would like, but today's candle has certain aspects that I consider bullish and ensure that I'll hold the stock through tomorrow's session:

1) Positive divergence on volume - price down but volume up. Volume leads price many times.
2) Candlestick pattern called hammer which has a considerable lower tail and suggests buyers came in late in the session.

[AustinPowers]

David-

What are your thoughts for ECIL, is it time to move on from this one yet?   Thx

[David Randolph]

I'll make an update on the stock after the close or tomorrow before the open. I don't like to analyze intraday data, from my experience you'll lose more than you win doing that. Certainly the stock hasn't momentum on its tail right now but I have 13 holdings at this moment and this isn't one I'm thinking of selling just yet.

I don't like to be 100% invested because sometimes a good opportunity shows up and you have nothing signaling "sell" ...

Good trades AustinPowers 

[David Randolph]

Holding the $9 support. I'm sorry, today I don't have much time to analyze, just saying the essential.

[David Randolph]

Like everyone else here I'm trying to learn a bit more about the stock market. And what I've learned from this ECIL pick is that I want stocks breaking out to new highs, but not when they've already made a big move to reach that point. You see, a breakout is a much more valid technical signal when the stock is initiating a bullish move. It is a different thing to have a breakout after an already big rise.

Concerning the specific case of ECIL, the stock is resting when it should be shooting up, I bought her expecting that kind of action. The stock has a support at $8.89, the last local high. I'll drop it if it is set to close below this level.

[AustinPowers]

David-

Decent day for ECIL.  Do you think some more consolidating in this range before another   move up?

[David Randolph]

David - Decent day for ECIL. Do you think some more consolidating in this range before another move up?

Austin, I don't know how long will the consolidation in ECIL last. What I do know is the trend is my friend and the trend in ECIL is bullish at this moment.

[jeff46902]

David,

Do you think the trend is still bullish?  I looked at the latest MACD, and the blue line has dropped below the brown one, with a bit of negative divergence.  I thought that was a bearish, or sell, signal.  Please correct me if I'm wrong.

Thanks,
Jeff

[Ramsburg]

David,

Do you think the trend is still bullish?  I looked at the latest MACD, and the blue line has dropped below the brown one, with a bit of negative divergence.  I thought that was a bearish, or sell, signal.  Please correct me if I'm wrong.

Thanks,
Jeff

Hi Jeff,

The MACD is only an indicator... An instrument that a Technical Analyst can use sometimes, along with thousands of other indicators.
David didn't bought ECIL because of the MACD, and I don't believe he's going to sell because of it

On my opinion (and I didn't talk with Dave about it), ECIL has an ascending support line, and this line is intact, and so the short-mid term trend.

best regards,

[calven]

Old resistance becomes new support! Meaning we are consolidating here before another move up! Happy trading. DO NOT SELL unless the price closes below that trendline!

[David Randolph]

Like calven said, old resistance becomes support. $8.89 is supporting ECIL and volume is growing so one can only expect the bullish trend will resume.