Long term trends: Evolution Petroleum Corp
is showing a upward trend. In the past few months this scrip has moved 80%. The good news in the crude prices has kept the momentum going for this scrip. Currently it is priced at $9.20. The blue area shows the price movement of EPM
and as seen this movement compares positively with IXE Index. This is confirmed by good volumes over the past few months. Moreover, the Relative strength
benchmarked with IXE shows a sharp
upward trajectory. The MACD
confirms some more steam is left in this rally.
Short term: In the short term analysis, EPM
is showing overbought signals. This is also confirmed by the candle stick patterns that is showing some consolidation near the $9 levels. I would expect a marginal correction to around 8.50 levels before further strength.
Overall this is a good for a short term trade in the 1-3 month horizon.