Evolving Gold

My last call on this play was nice and yielded 30.1% gains in 17 days, let see if EVG is ready to give up a little more... We now have 4 black crows (or red candles on my chart) on the candle stick formation and yesterday its low of the day hit the support line. Indicators are a little too strong right now but they could reverse mid-point as they've done in the past. Yesterday volume was above average but I would not call it a blow off candle. So the play today on EVG is simple... Wait! LOL! Let's see where it goes today. If its continuing on the down side, I would want to make sure it holds support at $0.80 before getting in. If it does turn around, I would want to see a close above $0.86 and a confirmation candle before getting in.

So what I'm really hoping for is a little sideways motion for the indicators to come down a little more and tempt me into buying around the $0.82 mark. From there, first target would be the top trend line or about $0.92 for gains of 12.1%, followed by its recent high of $0.95 for gains of 15.8%. If it does as predicted, this will now have formed a Double Top and might have a hard time breaking it. Breaking it would give you the following resistance line at $1.03 for total gains of 25.6%. The time window on this should be less than 20 trading days.

Other daily picks can be found here.

Cheers!