Ecofibre Limited

February 7, 2021 - 9 months ago
Share on twitter
Share on facebook
Share on linkedin
Share on email

Technical outlook – Approaching this share from a technical perspective, we can assess back in March 2020, Ecofibre Limited (EOF) established a potential base from the $1.20-30 region, which has now, potentially, risen to $1.50-70, to which if challenged, should see a bullish response.

The bullish divergence from the Moving Average Convergence Divergence (MACD) now puts this share in a ‘bullish’ position.

However, the Relative Strength Index (RSI) pattern is not as encouraging; however, in a position to support upward bias, if we witness a break above the 50-midway point.

Traders can take advantage of divergence by using a variety of trend-based strategies.

Divergence is probably one of my favourite trading signals because they are dynamic and most often offer a reliable, high-quality trading signal reversal when combined with other trading tools and concepts.

In technical analysis, divergence can be a significant warning signal that a bullish or bearish trend is coming near an end.

Divergence appears when a technical indicator (oscillator) begins to establish a trend that disagrees with the actual price movement.

These “disagreements” are strong signals and somewhat useful for the trader/investor.

From the given analysis of the technical assessment, the immediate target is located at $2.25, with scope to challenge $2.70-75. Reassess from there.

Company Overview – Ecofibre Limited (EOF) is focused on selectively owning or controlling specific parts of the hemp value chain, in targeted geographies.

EOF sells hemp-based products to consumers, wholesalers and manufacturers.

EOF holds diverse collections of genetics with over 300 landraces of cannabis from over 25 countries.

Share on twitter
Share on facebook
Share on linkedin
Share on email