Short Term Trading Week Starting: 25th July, page-444

STTCOMP EHL, TA LONG
Emeco Holdings (EHL) - Market cap ~$24 mil, last price 3.9, $13mil cash at 31/3
Mining equipment rental business

Probably one of the last mining services/support co's that is yet to bounce significantly.  One only has to look at the charts of BKN, MND, ASL, IMD to see how beaten up the sector got and has now rebounded.  Obviously EHL is a much smaller market cap and can't be put in the league such as these, however, I think it can start a recovery.

The chart shows the stock trading in a channel between 3 - 4c approximately from Feb until current.

4c is resistance.  From the chart we can see that there was two failed breaks of this resistance at the start of March and middle of May.

The stock currently is undergoing a third attempt.  Today the volume was markedly higher which is a positive, with large parcels traded on the close.

With results season commencing it's a possibility that their result may be the impetus for the 4 break out.  Will need a big volume spike to do so and for it to be convincing