This week, the stock on my radar is none other than the famous ASX:ECX. The structure looks promising for potential trades with a sizable profit both long and short sides.
Lets dig deep and analyze.
ASX:ECX aka Eclipse Group has been struggling withing the range of that chart I call fight zone. It is a price action range that spans from 1.195 to 1.485. That is a 24% fluctuations that happens more than 2 times. This could have provided a good profit for those swing-trading both long and short sides of the trade. I like the volatility in this stock it can be source of lucrative trades for sure. But apart from these crazy swings, what do the technical indicators say at the moment? Should we long or short? Lets see what the indicators have in their pockets:
- From the structure point of view, the chart looks like a ascending triangle which is inherently bullish, this can be confirmed if the price stays above 1.490 for few days.
- PSAR lipped to the upside which is bullish
- LSMA pointing up which is bullish
- Price above both 50MA and 200MA that is bullish
- Price tried to go above the fight zone but came back in which denied the breakout from ascending triangle. this is bearish, so bulls need to keep an eye on what is coming in next few days.
- RSI is neutral
- XJO is struggling with 200MA which if failed can drag down some of these highly volatile stocks
I think bulls have more power at the moment. However, for anyone who wants to enter this stock, better wait for the confirmation of breakout from the ascending triangle. if the breakout fails, you can place your orders around 1.375 or 1.3 or 1.265 or 1.2 in that fight zone and swing trade the zone again but DYOR.
I will keep an eye on this stock for you and update you when any action is required.
For the time being stay safe and have a profitable trade week. Don't forget to smash the likes.
Lets dig deep and analyze.
ASX:ECX aka Eclipse Group has been struggling withing the range of that chart I call fight zone. It is a price action range that spans from 1.195 to 1.485. That is a 24% fluctuations that happens more than 2 times. This could have provided a good profit for those swing-trading both long and short sides of the trade. I like the volatility in this stock it can be source of lucrative trades for sure. But apart from these crazy swings, what do the technical indicators say at the moment? Should we long or short? Lets see what the indicators have in their pockets:
- From the structure point of view, the chart looks like a ascending triangle which is inherently bullish, this can be confirmed if the price stays above 1.490 for few days.
- PSAR lipped to the upside which is bullish
- LSMA pointing up which is bullish
- Price above both 50MA and 200MA that is bullish
- Price tried to go above the fight zone but came back in which denied the breakout from ascending triangle. this is bearish, so bulls need to keep an eye on what is coming in next few days.
- RSI is neutral
- XJO is struggling with 200MA which if failed can drag down some of these highly volatile stocks
I think bulls have more power at the moment. However, for anyone who wants to enter this stock, better wait for the confirmation of breakout from the ascending triangle. if the breakout fails, you can place your orders around 1.375 or 1.3 or 1.265 or 1.2 in that fight zone and swing trade the zone again but DYOR.
I will keep an eye on this stock for you and update you when any action is required.
For the time being stay safe and have a profitable trade week. Don't forget to smash the likes.