The consolidation pattern in Eguana has dragged on for longer than expected, due to a lack of news out of the company, but the fundamental outlook remains good. It is down on a support level and every time it tries to break down through it, support kicks in.
On the latest 6-month chart, everything appears to be in place for a new upleg to begin soon. The earlier overbought condition has now fully unwound, moving averages are in bullish alignment, with the rising 50-day moving average having caught up with the price, and the volume pattern is bullish. So it is thought that a bull Pennant is completing, even if it is “getting a bit long in the tooth”. Thus it is interesting to observe a slight but noticeable pickup in upside volume in recent days, with a small bull hammer appearing yesterday when the support was challenged. This may be the precursor to the expected new upleg. Good point for new purchases here, since a fairly close stop can be set below the support, say at just beneath C$0.24. Eguana trades in good volumes on the US OTC market.
Eguana Technologies
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Eguana Technologies Inc, EGT.V, EGTYF on OTC, closed at C$0.27, $0.201 on 10th August 16.
This update will be filed under Mineral Stocks in the Archive.
Posted at 5.40 am EDT on 11th May 16.