article 3 months old

Evolution: Showing Signs

Technicals | Nov 22 2022


By Michael Gable 

Share markets have spent the past week consolidating that big move post US CPI. There has been a bit of profit taking but we are not viewing any danger signs as yet.

The S&P500 Index still looks set to gravitate up towards its 200-day moving average. If that happens, we can reassess at that stage.

One point worth remembering is that we always need to be aware what the "consensus" view is. Often the best opportunities are when consensus ends up being wrong.

At the moment if feels like everyone is calling this a "bear market rally" and that recession is guaranteed. Our advice is to just be open minded to the opposite occurring.

Try to think in terms of "probabilities" of events happening and avoid making predictions – especially if you have the tendency to allow yourself to be wedded to a point of view which can end up well past its use-by date.

In today's research, we have analysis on Evolution Mining ((EVN)).

EVN levelled out in October, forming a resistance level near $2.15.

It then gapped up in early November and rallied on very strong volume.

The past few days has seen it consolidate on lower volumes, which is a positive sign.

If we see EVN push higher again beyond $2.60, then traders can consider that to be the next buy signal with the next upside target being in the low $3's.

Content included in this article is not by association the view of FNArena (see our disclaimer).
Michael Gable is managing Director of  Fairmont Equities (

Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services. 

Michael is RG146 Accredited and holds the following formal qualifications:

• Bachelor of Engineering, Hons. (University of Sydney) 
• Bachelor of Commerce (University of Sydney) 
• Diploma of Mortgage Lending (Finsia) 
• Diploma of Financial Services [Financial Planning] (Finsia) 
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2


Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.

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