Last week Clive Maund provided some excellent TA on both the long term and short term ECU charts. At the time, the ECU share price was below the short term resistance level he defined in the mid to high $0.50’s and has since broken through to once again test the 200 DMA and one-year downtrend line, shown in the chart below.

Since that time, the share price has retraced to the previous short term resistance (now support) level and depending on the outcome, may make another attempt at breaching the ever elusive 200 DMA barrier and one-year down trend in the coming days or weeks.There is also a chance, especially if gold is hit, that it may once again retest the major support level in the high $0.40’s to low $0.50’s.

It is difficult to predict what direction ECU will move given the current overall lethargy seen in the junior sector and sensitivity to the underlying precious metal prices, however a move through the downtrend and above the 200 DMA will be extremely bullish and setup the share price for another attempt at $0.90, possibly making the first significant higher high since ECU peaked three years ago.

The next few days or weeks will be critical in my opinion in determining what direction the stock decides to take.

Stay tuned…