ELCO potentially breaking out to upsideLong term cup and handle formation, with a potential move to the upside. Close above 93p is a strong buy signal with initial target/resistance being 113.50p, namely all time high.
ELCO trade ideas
Will Elecosoft PLC Cope With The Resistance Zone?Elecosoft PLC created an all-time high in October 2007 at a price of £1.14, then made a low of £0.06p in December 2011 which is a big drop.
At the moment price looks strong as it heads up making higher highs and higher lows. Although it looks strong now, the uptrend could find some difficulty advancing any higher at the resistance zone consisting of the £1.00 round number and the all-time high.
Elecosoft is a software development company which is performing well at the moment and seeing an increase in volume over the past week.
The 50 simple moving average has been used as support on both the Weekly and Daily charts.
Price does not show any signs of slowing down and may prove to be stronger than the resistance zone standing in its way. If this proves to be true then we may see price smash through the resistance area then go on to make new all-time highs.
Getting into a long trade now would not be the best option here as the upside may be limited, so it may prove to be best to wait for price
to clear the resistance zone then the upside will be clear.
More updates to follow...
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