Whenever there is extreme volatility as we have witnessed over the past 2-3 months it makes interpreting charts even more difficult than during relatively stable periods. Looking at the ECU chart we can now see a triangle formation occurring with a clear downtrend line adjacent to the 50 dma. The last few days of low volume and stagnant price movement appear to indicate a base has developed so look for a conclusion to this patter shortly, probably this week sometime.

On the upside, $0.90 is important resistance while around $0.70 should provide support. The larger silver miners (SLW, PAAS, SSO, HL, CDE) have all moved higher from their 52 week lows and many now appear to be retesting recent previous highs. The second tier of silver explorers including ECU should now begin to fill that gap created by the leaders on the next move higher. That could be this week if the underlying commodity prices cooperate.