Does ECMH Have What it Takes to be the Next Big OTC Runner?
Anytime we are taking any stock like ECMH, IFXY, BYOC, or ATPT –as you have seen in our other featured packets so far –we have to look at price channels. ECMH, just like IFXY, BYOC, and ATPT, all started from the low triple zero price point. We showed solid examples of how a stock like IFXY showed weakness from the beginning while BYOC and ATPT showed certain strength indicators from the beginning. So not only are we going to look at the price channels for ECMH, we are also going to make some comparisons to ATPT and BYOC to see if something truly lies in wait for a huge breakout here.
ECMH .0001 – .0009 = Approx 940 million. ATPT .0001-.0009 = Approx 700 million
This is a great example of why this is important. Real quick, we gave an honest but rather bearish analysis on IFXY last week and this is one of the reasons why. Price Channels, they are so important and can tell you so much about a stock. See below to realize the differences.
IFXY .0001 – .0004 = Approx 1.4 billion and that’s just .0001 – .0004 not .0001 – .0009. This shows why a stock like IFXY has had issues –there are too many shares to move out of a price channel.
Existing ECMH Price Channel .001 – .0016 but I believe to be .001 – .002 soon
As seen above, we have almost completely encompassed all the shares traded between .0001 – .0009 all between .001 – .0016 or 6 ticks being 670 million traded. This shows you the base ECMH is creating and many can argue it’s stronger than ATPT –however, similar in many ways. Let’s take a look at how ATPT started.
As with ATPT (shown above) it took approximately 5 trading days for it to really start its run after leaving the triple zero range. There are lots of similarities as we hit that 5th day, Monday, on ECMH. ATPT also took 3 days to leave triple zeros for good much like ECMH has. After this price channel fulfillment, which should be Monday on ECMH, I think we will make new highs shortly after.
Overall, we are seeing many similarities on how the price channels for both ATPT and ECMH have traded. The only difference we found is the fact that ECMH has actually encompassed more shares in a smaller range than ATPT did. This, in the long run, will create a stronger base and higher price averages for holders which is a positive. This is telling me the majority of people no longer have a triple zero average while I’m sure many did in ATPT much longer due to those price ranges which will eventually result in selling pressure.
Now Let’s Take a Look at other important Indicators…
Traders selling in the obvious .0014-.0016 range is creating those spikes. Overall, we are already seeing a steady uptrend being built on this. With this many shares already traded in a tight range, the flippers have to be losing ground and will have to average up if they wish to keep flipping. This will be interesting to monitor going into next week as I believe this begins to stabilize and longer holders begin to take over.
IFXY Accumulation (shown below) is an example of a spiky accumulation but also a downtrending one –as the spikes aren’t bouncing higher but bouncing lower each time. This is to show the difference I look for.
OBV for ECMH:
Showing something very similar to accumulation which are those higher and higher spikes. It will be interesting to see if this spikes up again early next week. This is showing that consistent flow of volume that is important in maintaining a long-term sustained run.
Quick Summary on OBV/Accumulation
What I’m seeing here is the beginning of stair steps. The stair steps are even being reflected in the accum and obv meters. Higher spikes and lower and lower downturns. It will be very interesting to see these indicators next week.
Intraday Chart and another VERY important non-technical aspect to monitor:
We are definitely seeing a for sure bottom at .001 –in essence, confirming that new price channel with the triple bottom (ignore the .0009 paint job). It looks like in the last two days we are also beginning to confirm .0011 as a solid support as well which tells me these flippers are losing ground. The key level to start getting 30 min closes above is .0013. I think as soon as that happens we start to really move here –and move quickly based off the price channels discussed earlier. A break of .0016 confirms the long-term trend/breakout here, from our perspective.
These two posts from the company are very important IF follow through occurs. This is what ties ECMH into even more similarities with ATPT. We have the zero dilution, zero convertible debt here with ECMH much like we did with ATPT. The retirement of shares is also occurring which, from our perspective, is one of the largest positives you can get on an OTC stock.
Final Summary :
The technicals speak to me on ECMH, much like they spoke to me on BYOC and ATPT. Especially with ATPT I see many of the same similarities here. I first bought ATPT at .0008 which later has run as high as .0058 = over 500% gains. I’m not saying the same thing will happen with ECMH, I’m simply saying I see a lot of similarities here based off what we have seen on L2, the chart, and the indicators to go along with it. We also have a CEO that as of right now is creating the proper momentum to continue to create the healthy long-term chart I like to see. I was a buyer at .0012 today (Nov 10, ,2017) with just above a .001 average and plan on fully averaging up on this position as I like what I see here. When you have zero dilution, shares being retired (maybe), a CEO willing to create momentum, and a bullish chart… Well, I think the answer is pretty simple.
Technical Analysis by Alex S; Owner/Founder
You can follow him on Twitter @SUNNYLAND24
Compiled/Proofread by Noëlle H; CTO/Site Administrator
You can follow her on Twitter @subliMINXal
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