Along with appreciating being well educated by some great writers at this site, I enjoy researching, weighing probabilities and making forecasts on different markets with the application of intermediate and long term moving averages.

I did a write-up some years back on gold when the metal crossed a 1,000 week moving average to the upside on its second try in the mid $300's. Research and experience has shown me to use moving averages as keys for support, resistance and directional market changes. The slight problem I have encontered is in determining when a significant cross has been made, but really not with too much difficulty. The 1,000 week average is more than likely closed followed by some very large long term money interests as they do not occur that often and are significant.

Over the intermediate term I rely on the 200 week moving average line for guidance. In determing over-bought and over-sold areas when a market gets well extended either above or under them is another story where other indicators can be used and possibly discussed at a later time. Judging tops on extreme run-ups above important averages is extremely difficult.

The point that I wish to make tonight is that ECU has approached its lower ascending 200 week average over past weeks, sold below and is currently above it. I continue to view the location of the average which is currently at about $1.60 as significant support and an area well capable of reversing the current intermediate down-trend in the shares of ECU. From research over the years, many stock declines have been halted by this important intermediate average, along with other moving averages for the short and longer term. When markets trade up and approach moving averages they also pose significant levels to surmount in the form of resistance.

Hopefully, this example may be proof enough that ECU has BOTTOMED.