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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.

All trading involves risk. Losses can exceed deposits.
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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