Evolving Gold – EVG (TSX-Venture) – Technicals Favour Higher Prices Ahead

by Olivier on July 22, 2009

Evolving Gold – EVG.V is my newest public list addition. Some people have asked me how I find new stocks. So I thought it might be interesting to answer that question on my website. As you are probably aware of I somehow am a trend follower. But I am less mechanical in my approach and stock selection than pure trend followers. I do lots of research and I try to implement other factors as well. I try to gauge management quality, country risk and what kind of potential a stock has. Does it have the potential to be a great story stock? Aspects like the ones listed do influence my buy and sell decisions.

In any case I try to avoid having too strong an opinion. That simply means in the end I listen to the charts. It doesn’t matter what kind of an opinion I have. Price and volume are my guides. I stick to what the charts and the trend tell me to do.

So far I haven’t done any DD on EVG.V – Evolving Gold but the recent price advance and the volume tell me a tidal shift in sentiment occurred. The thrusting move on impressive volume favours higher prices ahead. Whenever that happens I listen to the market’s message. Odds are high prices will move higher over time as a new trend has now probably started. Let’s watch this one closely and see what happens.


Tonight’s quote is from Michael Covel’s book: ‘Trend Following’. I recently bought that book but am not done reading it yet. I am not sure yet but this one might end up in my recommended books section.

Prices, not traders, predict the future.

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