Chart Check EcoGraf: Downward Trend Broken – It’s Going Up Again

MACD Indicator with Buy Signal

The twelve-month chart of the Australian graphite company EcoGraf (WKN A2PW0M / ASX EGR) shows a nine-month price decline below the blue trend line since March 2024 – during which the price lost a good 50% of its value. At the beginning of December, it managed to jump above the trend line and the 100-day line. Despite a setback, the price remained above the downward trend line – recently, the 200-day line was clearly surpassed with high trading volumes, and the purple upward trend channel that began in November can now be described as well-established.

The two average lines still show a rather negative trend: the 100-day line has continued to run below the 200-day line since July, but was able to start moving upwards again a few days ago, which is encouraging.

A technical buy signal was generated by the MACD indicator a few weeks ago (blue line crosses red line upwards) and remains clearly valid. After a long time, the trend confirmer managed to make a significant jump above the neutral mark of 100 into positive territory at the beginning of December, where it is currently continuing to rise. The values of the Money Flow Index (volume-weighted relative strength RSI) have been trading near a level considered overbought (from 80) in recent weeks and are at the highest level of the last twelve months. The Overbought/Oversold indicator also approached the overbought status boundary twice (> 2.0), but quickly fell back halfway to the neutral middle.

ecograf140225-GOLDINVEST — Source: Comdirect

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