A speculative bounce play with massive upside potential
Published: Wed, 04/05/17
 SMS alerts can make the difference between a profitable trade and a missed opportunity. Text “alert” to 97000 to receive our instant, reliable and free SMS alerts. Hello fellow investors / traders, Our last alert, BRKK, was nice. I told you it could make a nice multi-day play, and it has delivered exactly that (and tomorrow could see even more upside). I
Tomorrow I'm looking at something lower priced with potentially even more upside, a "ground level" play if you will. The ticker is ECOB. And while ECOB is a little more speculative and could bring more volatility, its ultra low market cap of just over $150k per OTCMarkets.com, makes this a very appealing potential gainer. ECOB has been beaten down of late, closing at $0.0009 today after it was trading at over $0.0025 just a couple weeks ago, and over $0.01 just a few months ago, we see a lot of potential upside. I was watching ECOB today and the level 2 looked extremely thin. In short, we think ECOB has excellent potential for a bounce over the coming days. As you can see in the chart, ECOB has a sloping support line and every time it hits this support it bounces. Just a couple weeks ago it ran from around $ 0.0014 to $0.0029 in just two trading sessions for over 100% gains. And in December, this bounce was over 100% higher. You'll also notice the 50 and 100 day moving averages at much higher levels, these could be potential technical targets and definitely worth keeping an eye on. What is not showing on the chart is the massively oversold RSI reading of around 25. This could mean a bounce is imminent. In short, we think ECOB looks great on a technical basis, and a bounce from these oversold levels could bring us some hefty gains. While we are primarily focused on the short term trading setup and chart in ECOB, here's some background on the company... Eco Building Products, Inc. (ECOB) is a manufacturer of proprietary, environmentally conscientious chemistry utilizing patent pending ECOB WoodSurfaceFilm™ and FRC™ technology (Fire Retardant Coating). Eco's products protect against fire, mold/mycotoxins, fungal-decay, wood ingesting insects and termites. Eco is headquartered in San Diego, CA and goes to market through licensed Affiliates nationwide. For further perspective, here's an excerpt from management’s communication to shareholders in the Fall of last year: “2016 proved to be a year of transformative change for Eco Building Products. Difficult, sometimes painful decisions, had to be made, but the Company was up to the task and steadfast in its mission to disrupt the wood preservation Industry. We have been very deliberate and methodical in transforming Eco from a treated wood products supplier to a developer and manufacturer of cutting edge, environmentally friendly wood preservation chemistry and technology.” A couple of weeks ago the company announced it had formed a subsidiary, Wood Protection Technologies, Inc., to position the Company's intellectual property for alignment with major Industry partners and to attract new, more efficient, lower cost capital. You can read the Company's latest press releases at http://finance.yahoo.com/quote/ECOB?p=ECOB In Summary... ECOB has an extremely tiny market cap of just over $150k, one of the smallest we've seen in a long time. Its share price has been decimated of late, and with technical support and a grossly oversold RSI reading, we think ECOB is set to bounce big. The last time ECOB bounce off support, it gained over 100%. The time before that, over 100% as well. Now its trading at even lower levels with a thin level 2, we could see even bigger gains. I'll update you in the morning. Until then do your DD and let's hope for a big day tomorrow. --------------------------------------------------------------------------------------------------------
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