As we have witnessed on many occasions over the past couple of years, ECU put in a strong close (+5 cents) in the last hour or so of trading and finished at the high for the day.

The share price now sits just below the long term down trend line as it makes yet another attempt at breaching this important threshold. We should know sometime next week if this if the move that finally breaks through this seemingly unyielding down trend line. The critical closing share price levels to watch for are $1.80 (long term trend line), $1.84 (200 dma), and $1.90 which is the most recent high in share price.

The share price of ECU has routinely closed in the higher portion of the daily trading range on days with relatively higher volume. This is clearly illustrated in the Accumulation/Distribution chart below, yet the reason(s) behind this peculiar trading activity is unknown. What is known is that this large positive divergence between the Accum/Dist line and declining share price is an extremely bullish scenario.

With the summer months over, we now enter the traditionally strong months for PMs so the next few weeks could be very interesting.