The six-month chart of the Australian graphite company EcoGraf (WKN A2PW0M / ASX EGR) ultimately shows a sideways movement after its previous peak in April – albeit with rising lows.
Since mid-July, it has failed three times (each time accompanied by increased trading volume) to break above the 0.40 AUD mark. Despite this, the six-month blue uptrend line remains intact – it was only briefly broken at the beginning of July. The 100-day line provided support there, as it did twice thereafter.
Positive Signal for EcoGraf: Moving Average Lines Continue to Rise
Following the medium-term buy signal from the moving average lines in March (the 100-day crossed above the 200-day), both lines continue to rise steadily – thus, everything here is to be considered positive.
A technical buy signal was recently generated by the MACD indicator (blue line crosses red line upwards). Also positive is the trend confirmer – it has remained above the neutral mark of 100 in positive territory since July (albeit sometimes barely) and is currently even rising slightly. The Chaikin Money Flow is noteworthy: since April, it has been exclusively in the green zone, indicating a continuous inflow of capital into the stock.
For the Overbought/Oversold indicator, a peak recently reached the 2.0 mark, considered overbought. However, the swift correction immediately led the indicator back into the more neutral range at 0.5. Here, or slightly below, the indicator remained for most of the observation period.
Conclusion: The chart pattern and the indicators presented do not impede a break above 0.40 AUD.
