Keen eye ElPrimero!

Dan usually posts charts for the same miners every week so one could have easily overlooked the addition of ECU to this week's group. That $1.95 level that Dan highlighted seems to be key for several reasons so we will have to wait and see how the share price reacts when it approaches that threshold once again.

I pulled up the 7-year chart for ECU and noticed there appears to be nested trend lines (lighter blue lines) that have a lower slope than the long term trend channel (thick blue lines). Notice how these trend lines link the peaks of the previous cycles with the troughs of the subsequent cycles. I have extended both sets of trend lines further out and up which produces a price target in the low $20 range where they intersect. That may sound to be a stretch but keep in mind Sinclair has said some of the best juniors can achieve a 10 fold move from here and that a $4 billion market cap for ECU is reasonable considering much higher PM prices and a potential resource in excess of 1.5 billion ounces of silver equivalent. These types of moves are not unprecedented.

Goldrunner on the gold-eagle forum who I consider to be one of the best technical and fundamental analysts out there routinely uses fractals in his technical analysis and price projections. ECU like many other JPMS is full of them and they suggest we are now at the end of this long consolidation.