Yesterday, EVERGRN rallied 7.5 sen (+16%) to close at 54 sen. Trading volume was at a 4-month high, and the share price exhibited a classic “Bollinger Squeeze” and subsequent breakout pattern. In addition, all 3 major SMAs (20-, 50- and 100-day SMA) have been taken out in one fell swoop to signal that a bullish reversal is on the cards. It is probable that follow through buying would continue over the coming few days and we reckon that EVERGRN could potentially extend its gains towards the next resistance level at 60 sen (R1). Should this level be taken out as well, expect a further move towards the 70 sen (R2) confluence between the 38.2% Fibonacci Retracement level and the 16 month high.

 

Source: Kenanga