Evolution Mining (EVN) is a gold mining company focused on mining and exploration in Australia.
“I last looked at the chart in November where it seemed to be making a move higher,” Michael said.
“I was also attracted to the fact that there tends to be a high correlation between the gold price and the US dollar.
“When the US dollar falls, the price of gold tends to increase.
“With the US dollar on the way back down, this provides a tailwind for resources like gold. “The recent pullback in the share price is providing another opportunity. Firstly, we can see that the stock broke a support level on 17 March (circled), only for it to launch higher again. “This is known as a “false break” and it is a powerful buy signal.
“Now we have the shares trying to push beyond resistance near $3.
“In my opinion, EVN appears to be moving higher again and this is providing investors with another buying opportunity,” Michael said.
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