Welcome to RiskMastery's Red Flag Stocks - Stocks with bearish potential.
In this edition, we'll be looking at ASX:EVN ...
I believe this code is at a point of potential volatility.
If price can hold below $3.27 ... Bearish potential may be unlocked.
My key downside targets include:
- $3.00 (Conservative)
- $2.73 (Medium)
- $2.33 (Aggressive)
...
daily chart shows a down trend channel
in place and expect lower prices to about $1
as a possibility.
massive gap down today losing 17%.
EVN was highly loved in the previous decade.
I guess all those acquisitions didnt work out as planned?
or maybe sentiment to the metal isnt great
Gold is due for a break high in 2024. be patient and
you will be rewarded.
Pull back met at $3.76-$3.72 ✅
Inverse head and shoulders forming with an ascending neck line
Possible sideways chop in Gold or slow rise of Gold.
Debt Ceiling should get approved if not Gold will spike and thus EVN
Until Fed officially pauses rate then Gold to spike past previous highs
EVN to pull back possibly to $3.60 before ranging back up to $4.50
Still...
Pull back to $3.76 Look to entry at these levels after confirmation of points below ( one scenario)
1. as. strength wanes
2. Dollar has a slight rally up and then EVN back down to consolidate
3. then Debt Ceiling anxiety brings gold price up
4. Debt increased to $$$ >34Trillion - Dollar looses more purchasing power - USD down $1.00??- ZIRP - rates down, down
5....
I know I know it looks like a mess
It also looks liek it could be a head and shoulders
BUT
It's not.
'It's a bullflag, swith a steep falling wedge completing teh cycle ASAP before gold turns back up. HOw do I know? Look at the RSI- it's sitting on RSI30 on the W. That is an epoch turn.
ALso... its at the bottom of a channel.
Ou can see the two dominant...
I'm new to TA, this analysis might be completely wrong, happy to hear any feedback.
Looks like a head and shoulders pattern breaking bullish trend. Lower highs and lower lows on weekly RSI = momentum breaking down , bearish gold prices and lower volume profile could be other bearish factors. If I am wrong, it's probable going to be a nice bounce of the trend line...
Using Gann's time count, EVN (gold) rallied up from March 5 for 87 days, and it was retraced down for 29 days, coincidentally the bottom was made on June *29*.
On the daily chart, there is a higher swing bottom and show in the circle.
this leads me to believe that EVN should be going up from here, and if 1st range repeats, it should hit 6.20 as the eventual target
EVN took a beating after gold price dropped but it seems that this current pull back is about to exhaust at the 61.8 Fibonacci level. Some bullish price action at the current levels will be an encouraging sign to get long for a potential target of previous highs. My initial target would be $5.00 level (potential 12% gain) and a tight stop below the current swing...
It seems that EVN has found good support on the long term trendline and whenever it dropped, the trendline worked extremely well. This time too EVN has bounced off convincingly. This makes me bullish ECN and any little pullback could be a very good Buying Opportunity. I have marked a Buy Zone between $4.20 - $4.30. My trade plan is if price retraces lower, I would...
Gold mining company
Analyst forecast an 11.3% earnings growth.
ROE expected to be 19%
current ratio 0.6
assets to liabilities 2/1
+4% dividend which should all grow If my macro outlook plays out.
