Echo Entertainment trade idea

Echo Entertainment (EGP) has been popping up on the key technical indicators list recently as its price action continues to outperform.

Echo Entertainment
Source: Bloomberg

The stock is currently trading at fresh 52-week highs and has been in a firm uptrend for a good six months now. Volume traded has also been fairly decent and – even more impressively – it remained quite steady in a time when markets were in turmoil.

While I feel there is further to run following the recent move through $3.50, the stock has just popped up on the overbought list as well. As a result, I feel some patience is warranted and I would prefer to buy the stock on a pullback into $3.50. Stops would have to be placed below $3.40 with initial targets to $3.70. I will follow up on the trade next week.

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