Even during the worst bear markets and market crashes, there are a few select stocks that are intrinsically strong and go up for their own reasons.
Ecolomondo Corp. (ECM:TSX; ECLMF:OTC), at this point, looks like it will be one of them.
On its latest 6-month chart, we can see that it was unfazed by the heavy drop in the broad stock market late last week and looks like it is about to break out of a completing Cup and Handle base.
Ecolomundo, therefore, looks set to do well whatever the broad stock market does. So we stay long, and its rated an immediate speculative Buy here.
The convergence of the moving averages and the marked buildup in upside volume this month certainly suggest that it is ready to break out.
On its 2-year chart, we can see that after spiking dramatically higher last year, it lost most of the gains in the bear market that followed with a base pattern starting to form from last December that now looks to be complete with the upside volume this month and stronger Accumulation line pointing to an imminent upside breakout.
Ecolomundo, therefore, looks set to do well whatever the broad stock market does. So we stay long, and its rated an immediate speculative Buy here. Notes that it hardly trades on the US OTC market where, if you buy it, limit orders should be employed.
Ecolomondo Corp. closed at CA$0.54, $0.405 on September 23, 2022. It is currently trading at
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The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
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