ECIL

[AustinPowers]

Maybe this will provide some pop tomorrow: I notice the stock went up $.12 after hours tonight when this article went out.

https://secure2.thestreet.com/cap/login/rm_mbp_yahoorealpros.jsp?cm_ven=YAHOO&cm_cat=PREMIUM&cm_ite=003190&flowid=db59b41fe9&url=http%3A%2F%2Fwww.thestreet.com%2Fp%2F_yahoo%2Frmoney%2Ftheswingshift%2F10227879.html&denied

Real Money.com article.  I'm not a member so I can't comment on the content of the article, but ECIL is mentioned as a good long candidate in the headline.  LSI as well.  I noticed on Thompsons' financial that there was heavy buying by the big boys today for ECIL.  If there is any validitiy to the info. on this link then maybe it's ready to move up again:

http://thomson.finance.lycos.com/lycos/iwatch/cgi-bin/iw_ticker?ticker=ecil

[David Randolph]

ECIL is still consolidating above the resistance level of $8.89. I don't want to see this stock closing below that level. Perhaps the article from Real Money that AustinPowers showed us will be the catalyst for the bullish trend to resume.

[David Randolph]

Just barely closing above $8.89. I'll keep the stock.

[David Randolph]

Not just barely, ECIL closed above $9 at $9.01. Everything is allright with the stock at this moment.

[David Randolph]

Volume was the lowest on ECIL for more than a month now - there's no new technical information from a day like this one and no new opinions should be made. Holding and waiting for ECIL to get out of this tight range, hopefully the stock will do what usually stocks do, which is to breakout in the direction of the previous trend.

[AustinPowers]

David-

Hanging in there with you on this one.  I am by far a chart expert, however I think ECIL will provide us with its intent either today or Monday.  It looks like a bull flag if forming...at least I hope it is.  Thx for your continued analysis.  I am learning very much from the people on this board.

[David Randolph]

ECIL is losing volume and I'm losing hope. Getting more and more prepared to take a small loss on this stock. It is still possible, however, that ECIL is just consolidating here before its uptrend resumes. I don't have a clue, the only thing I hang on to and that led me to buy this stock was that the trend - my great friend - told me to buy.

If the short term trend changes and ECIL closes below the $8.89 support level I'll take the small loss as part of the normal process of a speculator's business.

[jeff46902]

I have had a stop-loss on ECIL at 8.65 ever since the run-up a few weeks ago.  Well, I see that I just got stopped out of it at 8.65 this morning, and that the trend is still downward.  I guess I'll get something else.

Would $1.93 be a good entry point for GLGS?  How high do you think that will go up for the rest of the month?

Thanks,
Jeff

[David Randolph]

Jeff, I believe I couldn't be more clear in stating that I expect GLGS to reach $3.13 before the end of the month.

Of course, there are no 100% sure things in the market, good luck !

[David Randolph]

A man goes out, trying to be a bit more conservative, and this is what he gets? ECIL made a false breakout (learning the lesson: it was too extended to breakout) and this is a technical sell signal without a doubt.

I'm selling ECIL at the open.

[Melf Elf]

After breaking out above David's big Ascending Triangle, ECIL has been consolidating in a bull flag.  Yesterday, ECIL put in a bullish hammer at the bottom of the bull flag pattern, and the technicals look good.  If ECIL prints 8.61, a penny above yesterday's high of 8.60, I'm a buyer.  Stop on the trade: a CLOSE below yesterday's low of 8.32.

Current indication: BID 8.55...ASK 8.61

[Melf Elf]

I just bought ECIL on the print of 8.61, above yesterday's bullish hammer high.  Stop is a CLOSE below yesterday's low of 8.32.

[Melf Elf]

I posted this analysis of ECIL in another folder on June 19 in response to Jeff's question below.  Since I bought this stock this morning (see posts above), I thought I'd repost the analysis here, in case anyone is interested in ECIL and my reasons for buying it.

Re: Buy and Sell Signals
« Reply #2 on: June 19, 2005, 04:33:32 AM »     

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Quote from: jeff46902 on June 18, 2005, 11:52:28 PM

I currently hold a long position in ECIL (in at 7.61 in early May), and was pleased to see it go up to 9.40 recently. However, a little disappointed to see it just sit around at the high 8's and low 9's for the past few weeks.
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You have an excellent entry into ECIL in both timing and price.  On May 5, 2005, ECIL had a gap up breakout out of the bullish Descending Triangle off the December 2, 2004 high.  The breakout was $7.45.

On May 13 and 14, the gap was filled, ECIL found support at its 50-day Moving Average (50 DMA), and it rocketed higher from a low of $7.20 on May 14 to a high of $9.45 on June 2 for a gain of 31% from that low.

Although it feels disappointing to watch the stock just sit around for the past few weeks, it's technically very healthy for the stock to consolidate after a big run-up and to form another bullish pattern from which to launch another rally. 

From the June 2 high, ECIL has been forming a bullish pennant or a bullish flag on volume that is much less than what it was during the rally to June 2. That's bullish.  Patterns usually resolve in the direction of the prior trend, which in this case, is bullish.

There are two upside pattern targets:

Pattern #1 - Descending Triangle from December 2, 2004 - May 5, 2005 put Target: $9.64 IN PLAY.  We got only to $9.45 on June 2.  Sometimes pattern targets aren't fully achieved, but we've also got...

Pattern #2 - David's big Ascending Triangle from January, 2004 to present.  That pattern breakout put $13.43 IN PLAY as long as we remain above the breakout level.

Sometimes stocks go back below the pattern breakout, as ECIL did after the early May breakout.  It did that to do something bullish:  it filled the May 5 gap at $7.30, and it found support at the 50DMA. 

If ECIL closes a little bit below $8.89 here, it's still in a bullish consolidation, and with the two bullish pattern targets IN PLAY, I'd give it some room on the downside to tag the bottom of the current pattern from the June 2 high.  We might drift a bit lower, as Saffeysite said.

For a stop, I'd suggest a close below $8.05 for now, which was the last low on May 25 prior to the big push to $9.24.  That's alot on the downside, but with your entry, I'd give this one lots of room until you see what develops.  You can raise you stop later as we get more data, but that guarantees you a 5% profit from your $7.61 entry, and it gives you a chance at a much bigger profits if the two pattern targets are achieved.  "Let your winners run...be ruthless with getting rid of your losers."

Don't worry about MACD.  Despite the fact that it's below the signal line, it's still above the zero line.    Look at stocks that have been in long-term bullish trends,  like the builders. MACD will go back and forth over the signal line many times.  That isn't a sell signal when a stock is in a bullish trend.  Also, look at the MACD on the weekly chart.  It's above the signal line, and it's above the zero line.

Good luck with your trades, Jeff.

[Melf Elf]

I just bought ECIL on the print of 8.61, above yesterday's bullish hammer high.  Stop is a CLOSE below yesterday's low of 8.32.

ECIL closed at 8.87, up $0.39.  I'll hold.  Same stop.  If ECIL prints 8.95, that will be an upside breakout above the June 2 high, and we would then have THREE bullish pattern breakouts IN PLAY since May 5.

[Melf Elf]

I just bought ECIL on the print of 8.61, above yesterday's bullish hammer high.  Stop is a CLOSE below yesterday's low of 8.32.

ECIL closed at 8.87, up $0.39.  I'll hold.  Same stop.  If ECIL prints 8.95, that will be an upside breakout above the June 2 high, and we would then have THREE bullish pattern breakouts IN PLAY since May 5.

No breakout today.  The high was 8.89.  ECIL currently is 8.57 BID...8.58 ASK, so I'm down $0.04     I'll hold the position. 

The chart still looks fine.  We're trading inside the bullish flag.  There's a chance that we'll break my 8.32 stop, tag the bottom of the flag pattern again, then break out.  I'm still using the 8.32 stop.  I only want to risk 3-4% on the trade. 

If I'm stopped out, I always can re-enter if I see bullish action off the bottom of the flag.