Chart check Ecograf: Breakout successful

The twelve-month chart of the Australian graphite company Ecograf (WKN A2PW0M / ASX EGR) shows a steady price decline below the purple trend line since March 2023. Shortly after the September low, a massive upward impulse led the price to the twelve-month stop at the end of October within a few weeks – both average lines, the downward trend line and the gray resistance line were easily overcome. In the subsequent consolidation, the price reached the purple downward trend line, which was successfully tested twice from above – the blue upward trend line was also established. This was the starting point for the next upward impulse a week ago, which again easily broke through the two averages and the blue and gray lines. Yesterday’s consolidation led the price to the gray line at 0.175 Australian dollars, which should now act as support.

The 200-day line is still negative and continues to fall. In contrast, the 100-day line has been rising for several weeks and was able to generate a medium-term technical buy signal by breaking above the 200-day line.

A technical buy signal was recently generated by the MACD and the Stochastic indicator (blue line crosses red line upwards) – the latter is already close to the upper limit of its range and could soon turn to sell again. For the first time in 2024, the trend confirmator also made a clear leap above the neutral mark of 100 into positive territory. The fast-reacting overbought/oversold indicator reached an “overbought” rating of 2.5 (> 2.0) for the first time a few days ago – however, yesterday’s consolidation was enough to bring it back close to the neutral zone slightly above zero. The Money Flow Index (sales-weighted relative strength RSI) has been rising steadily since the low in January (when it was almost considered oversold at just above 20) and, at 65, is clearly positive but not yet overbought (from 80).