On 8/8/09, my read was this: "EVG.v was 0.45 a month ago. It gapped away from that level ran to 1.36, pulled back to 1.02 and then ran to 1.94. The gap between 0.45 and 0.55 is still open and may never get filled. Since hitting 1.94, the stock has been retracing. This week the stock found support at 1.41 which is four cents over 1.37. I am watching the 1.37 level because it is:

- a 38.2% retrace of the 0.45 to 1.94 move
- a 61.8% retrace of the 1.02 to 1.94 leg

If 1.37 goes then technically it looks like 1.02 would be the next target but I don't think that will happen. The retrace off of 1.94 has been on dramatically lighter volume than the preceding run up. To me, that looks like a normal retrace of the move up and consolidation prior to the next leg up. As always, we will see."

Update - This consolidation is on very low volume relative to the move up. Now RSI, MACD and stochastics are all close to reaching levels where there should be enough potential energy stored to power the next leg up. If this is an ABC structure with 0.44 as the A, 1.94 as the B and 1.37 as the C then the upside target is just short of 2.90. That will require metals prices and news flow to be supportive though, imo.

http://cansanocapital.com/charts/EVG-daily-2009-08-19.png

http://cansanocapital.com/charts/EVG-weekly-2009-08-19.png