Enviroleach is an interesting company whose stock looks like it has great potential – and is believed to be ready to advance and at a good entry point here.
Enviroleach has developed a unique eco-friendly non-cyanide based method of extracting Precious Metals in the mining industry from concentrates and tailings etc, and also from electronic waste, that is cost effective. Although itself a relatively modest sized company, it has already attracted the attention of big corporations like Jabil Inc
, which is worth over $5 billion, with which it has entered into a strategic partnership. The market for processing electronic waste is huge.
The 6-month chart for Enviroleach shows its entire history since it started trading. After it first came to market it dropped steeply, which is a fairly normal occurrence, then stabilized before turning higher. After its first rally in June it has run off sideways into a rectangular trading range that is believed to be a consolidation pattern, meaning that it is expected to break out upside from this pattern. This positive interpretation is supported by the volume pattern, which is definitely bullish, and the On-balance Volume line, which broke to new highs on the little rally late last month. Although embedded within the Rectangle, the small consolidation pattern that has formed since the start of the month has some characteristics of a bull Flag. In short, it looks like the stock is ready to break to the upside, and soon, and we are at a good entry point as it not overbought here.
Enviroleach trades in reasonable volumes on the US OTC market, as we can see on the Bigcharts charts for it on this market shown below. On this chart the small pattern that has formed this month looks even more like a bull Flag, especially given the high volume leading into the Flag.
The conclusion is that Enviroleach is a strong speculative buy here, but as ever, buyers on the US OTC market should place limit orders to avoid being fleeced by the market makers.
Enviroleach Technologies website
Enviroleach Technologies Inc, ETI.CSX, EVLLF on OTC, closed at C$0.65, $0.535 on 15th September 17.
Posted at 8.20 am EDT on 17th September 17.