Ecolomondo Corp. (ECM:TSX; ECLMF:OTC) is a company that is set to do well because it has developed proprietary technologies for transforming hydrocarbon waste such as tires, rubber, and plastics into renewable commodity products, and so its green credentials will meet with the approval of the New World Order, even if private motoring eventually disappears.
On its latest six-year chart we can see that, after breaking out of a long trading range last year, it spiked quite dramatically to briefly approach CA$1.50. However, the gains that were made so rapidly were almost as quickly lost as it came rattling back down to a zone of strong support that was formerly resistance, where it is now believed to be basing prior to a renewed advance.
We can see technical reasons for renewed advance on the seven-month chart. In addition to the price rallying twice off the support it is now below a still rising 200-day moving average. In addition we see that after holding up well during the bear market, the Accumulation line has started to show marked improvement in the recent past, thanks to high volume up days with recent lows not confirmed by momentum (MACD) which is now trending higher. All of this increases the chances that it will reverse to the upside soon even if we see some more basing action first, and it is rated an immediate speculative buy here. Note that although Ecolomondo theoretically trades on the US OTC market, volumes here are very low and often nonexistent, so it should be avoided on this market until volumes improve.
Ecolomundo Corp, ECM.V, ECLMF on OTC, closed at C$0.49, $0.46 on Feb. 11.
Posted at 8.05 pm EDT on Feb. 13, 2022.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
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