ECA Bounce Trade

This looks to be a fairly high probability bounce trade, after that it may set up a nice short Swing or Trend trade.

 Here's ECA in what could be considered an "oversold" condition., volume has lightened up and the sellers are not so aggressive, which serves as a loss of momentum and a chance for the bulls to grab the wheel for a bit.

This 15min chart shows the moving averages crossing into a bullish stance, something that hasn't happened all week in the decline.

Most importantly, the 15 min chart of 3C is showing a strong positive, leading divergence to the upside. Whether there's one more day of divergence I can't say for sure, but I would say the probabilities for a bounce soon are very high as the 10 minute, 5 and 1 minute are all in leading divergences just like this one. That's pretty significant confirmation.

Since ECA looks like it picked up support in the $27.50 area, my stop would be a bit below that area, maybe $27.35.

I'm guessing the target on this one is going to be about  @29.75 where there is gap resistance. So you have about $.20 of risk here with nearly 2.25 in potential profit, that is an excellent Risk:Reward ratio. I consider anything above 4:1, this one is better then 9:1 and the trade shouldn't take too long.