Elys Game Technology (NASDAQ: ELYS) Broke Out (Again!)

The vertically integrated leisure gaming company that provides online and land-based gaming services in Europe and North America, Elys Game Technology Corp (NASDAQ: ELYS) shows signs of an upcoming price surge according to its latest charts.

Bullish Indications

#1 Flag Pattern Breakout: As seen from the daily chart, the stock was in a strong uptrend after which it started consolidating and was in a narrowing range. This is a classic flag pattern and is marked in the chart in purple color. A flag is a continuation pattern. Whenever a stock breaks out of this pattern, it typically continues its previous trend (uptrend in this case). Currently, the stock has broken out of the flag pattern. This is a possible sign of an upcoming bullish move.

Daily Chart – ELYS

#2 Above MAs: The stock is currently trading above its 50-day as well as 200-day SMA and had moved higher with high volume. This indicates an overall bullishness of the stock.

#3 Bullish Stoch: The %K line of the stochastic is above the %D line, which is a possible bullish indication.

#4 Bullish ADX and DI: The daily chart shows that the ADX line has moved higher from below the –DI and +DI lines. The +DI line and the ADX line are also currently above –DI line. All these indicate possible bullishness.

#5 MACD above Signal Line: As you can see from the daily chart, the MACD line (blue color) is currently above the signal line (orange color). This indicates a possible bullish bias.

#6 Consolidation Area Breakout: The weekly chart shows that the stock had recently broken out of a consolidation area. This is marked in the daily chart in a pink color rectangle. Currently, the stock is moving higher after retesting the breakout level of the consolidation area. This is a bullish sign.

Weekly Chart – ELYS

#7 Bullish Stoch: The %K line (blue color) of the stochastic is currently above the %D line (orange color) in the weekly chart as well, indicating possible bullishness.

Recommended Trade (based on the charts)

Buy Price: If you want to get in on this trade, the ideal buy level for ELYS is above yesterday’s close. This translates to a price of around $7.30.

TP: Our target prices are $10 and $14 in the next 3-6 months.

SL: To limit risk, place a stop loss at $5.50. Note that this stop loss is on a closing basis.

Our target potential upside is almost 37% to 92% in the next 3-6 months.

For a risk of $1.80, our target rewards are $2.70 and $6.70. This is almost 1:2 and 1:4 risk-reward trade.

In other words, this trade offers nearly 2x to 4x more potential upside than downside.

Risks to Consider
The stock may reverse its overall trend if it breaks down with high volume from the flag pattern breakout level. The sell-off of the stock could also be triggered in case of any negative news, overall weakness in the market, or any regulatory changes in the sector.

Happy Trading!

— Tara

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