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home » small cap highlights
Tony Golan
Chief Technical Analyst
StockProfit.com™
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This week I chose to highlight the chart of Ecosphere Technologies, Inc. (OTCBB: ESPH). ESPH is starting a powerful new long-term up-trend. The stock is now making higher highs and higher lows above a rising 200-day moving average (the red line on the chart above). Relative Strength Differential (RSD), our proprietary indicator for selecting stock in super-strong up-trends, is well above the 25% threshold line, indicating ESPH is very strong and should therefore continue trending higher at a faster rate than most other stocks.
ESPH spent much of the past year in a long-term down-trend, making lower highs and lower lows below a declining 200-day moving average. However, in mid-April, ESPH hit a low of 0.11 and turned back up. In late May, ESPH hit a new 52-week high of 0.50.
ESPH then pulled back and made a higher low of 0.32 last week, before turning back up with a long white candlestick and above-average, rising volume. Friday's price action in ESPH means the stock has completed a counter-trend correction and is turning back up to resume the up-trend to higher highs.
If ESPH now comes back down and trades below last week's low of 0.32, it will invalidate the up-trend and most likely decline back to the 200-day moving average. If it can stay above it, it should continue trending higher.
Tony Golan
Chief Technical Analyst
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