Eco-Stim Energy Solutions, Inc. (NASDAQ:ESES) shares surged 29.03% during trading on Thursday, going up from its prior closing price of $1.30 to $1.68. The stock price went upward in 5 of the last 10 days and has generated 36.59% during the last two weeks. The upbeat movement of both volume and price during the recent session is interpreted as a good sign, and, overall 1.83 million more shares exchanged hands compared with prior day. In total, 1.85 M shares exchanged hands for about $3.12 million.
Inside ESES’s Recent Trend
Eco-Stim Energy Solutions, Inc. (ESES) has broken the very wide and strong rising the short-term trend up and an even stronger rising rate is indicated. For any reaction back there will now be support on the roof on the current trend broken at $1.54, a point that may provide a 2nd chance needed to hit a runner. The next trend top is most likely to be exhibited at $1.93 will be the next possible trend-top level and thereby pose a resistance level which may not be broken at the first attempt.
Eco-Stim Energy Solutions, Inc. Technical Signals
ESES has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of a uptrend. Upon corrections, the price will meet support from the averages between $1.39 and $1.30. A break down through these support points will trigger sell signals. Its pivot point low generated buy signal on Wednesday July 19, 2017, which calls for additional surge until the stock forms a new pivot point high. There was increase in both volume and price. This is usually interpreted as a good sign as traders widely believe rising stock should see increasing volume.
Eco-Stim Energy Solutions, Inc. (NASDAQ:ESES) Support And Resistance Levels
In case of pullback, the next support the price will capture from accumulated volume will not be far away from current price at $1.42 and $1.40. It seems to be blessed by the accumulated volume as it meets no resistance above current level and favorable trading conditions will help the stock to show strong performance in the coming days.
It is important to note, however, that the stock needs to make its way through natural risk while testing a key support level. Once this support is broken, another support level will be to be established at a lower level. Turning back to this stock, Eco-Stim Energy Solutions approaches the first support point just current price at $1.42. In case of a break, the next support we will see from accumulated volume is going to be at $1.40 and $1.29.
Eco-Stim Energy Solutions, Inc. (ESES) Risk Assessment
A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.43 between high and low, or 32.82%. The average volatility for the past week stood at 11.01%.
The stock is extremely overbought on RSI14 (79). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.