Epure - Bullish harami pattern formation suggests near term upside

Epure could be heading higher in the near term with the formation of a bullish harami pattern on heavy volume yesterday, following the tweezers bottom at its key resistance-turned-support level and 2.5-month uptrend line.

With both the RSI and Accumulation/Distribution indicators signaling a sharp rebound from their 3.5-month uptrend lines respectively, they also suggest a resurrection of the uptrend momentum.

We expect the rebound to meet an initial resistance at $0.57 (1.5-year downtrend), breaking which, the next key resistance is at $0.66 (Mar and Jul ’08 high)

Immediate support is pegged at $0.465 (resistance-turned-support level), ahead of $0.42 (resistance-turned-support level).

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