Evolution is a gold mining company that’s focused on mining and exploration in Australia.
“There tends to be a high correlation between the gold price and the US dollar., Michael said.
“When the US dollar falls, the price of gold tends to increase. This means that buying gold stocks while the US is falling can be a profitable trade.
“The US dollar has had a phenomenal run this year.
“It now appears to be falling back and this will therefore be the time to buy commodity stocks such as the gold miner EVN.
“Looking at the EVN chart, we can see that it’s now starting to make a move.
“EVN levelled out in October, forming a resistance level near $2.15.
“It then gapped up in early November and rallied on very strong volume.
“The past few days has seen it consolidate on lower volumes, which is a positive sign. If we see EVN push higher again beyond $2.60, then traders can consider that to be the next buy signal with the next upside target being in the low $3’s,” Michael concluded.
Evolution Mining (EVN)
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