Evolution is a gold mining company which is focused on mining and exploration in Australia.
It is one that we looked at back in November but I sold out of my gold positions in April. We noticed at the time that after a big rally, everyone seemed to be bullish on gold and that it became a very crowded trade. I am now seeing signs that the stock wants to rally again, but the key difference now is that no-one seems to be talking about gold anymore.
This is usually the better time to get back in. Looking at how EVN has been trading, after easing back in May – June, EVN then launched higher last month on increased volume to re-test the prior peak near $3.96. It then fell back sharply but the past several days has seen it hold up well and the daily ranges have started to tighten up. This is a bullish sign and the consolidation under the old high means that EVN is absorbing the selling pressure here.
Once that selling pressure is out of the way, then EVN will be clear to resume the uptrend. I would be looking to buy back in at current levels.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
