Possible Bullish Engulfing Pattern Detected for Entree Gold (AMEX:EGI)

Analysts have spotted a possible bullish engulfing pattern in Entree Gold (AMEX:EGI) based on the price action in the company’s shares. Thus far today, Entree Gold has traded 87,000 shares, vs. average volume of 142,000 shares per day. The company traded 118,000 shares yesterday. Heavy volume increases the reliability of this bullish candlestick pattern.

Entree Gold Inc. is a mining company developing discoveries of gold and copper in Mongolia. The Company is currently conducting exploration on its mineral concessions in southern Mongolia.

Entree Gold (AMEX:EGI) has a potential upside of 117.1% based on a current price of $2.33 and analysts' consensus price target of $5.06. Entree Gold shares should encounter resistance at the 200-day moving average (MA) of $2.62 and support at the 50-day MA of $2.12.2.12 and support at its 200-day MA of $2.62.

Over the past year, Entree Gold has traded in a range of $1.65 to $3.52 and is now at $2.33, 41% above that low. Over the past week, the 200-day moving average (MA) has gone down 0.3% while the 50-day MA has advanced 0.5%.

By Peter Chu
pchu@fnno.com

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