Futuris Company (FTRS)

[k_trader]

EVXA dd and Questions Answered
After yesterday’s rally we retraced today and found support near the 20 MA. This was expected and is normal behavior for a stock after such a big run. We will probably see the stock settle around support the next day or two before it begins its next leg up. It is important to note that even after today’s pull back we are still up over 135% from yesterdays open and that is huge.

I have seen a lot of wild speculation on this stock, and read many comments that range from the angry basher to the happy pumper. I have been trading stocks for several years and learned you have to do it on technical analysis and known facts. It is important to ignore the hype and do the research.

I have done quite a bit of due diligence (dd) on this stock, and here is what I found.

EVXA Technical Analysis
EVXA has a huge upside potential no doubt. The technical charts look great and there are some key reversal indicators that tell us this stock is ready to run. EVXA has several things going for it now from a technical analysis point of view.

Double Bottom
The price has hit its 52 week low and is starting to retrace back to previous price levels. This low has been tested twice now forming a bullish reversal pattern known as a double bottom which is a strong reversal pattern. When the price breaks the neckline (resistance) and finds support there it is a confirmation the stock is going to run strong. This would be the closing price from the previous run up around 0.02's.

Pinch Play
A pinch play has started on EVXA. This is a very bullish signal indicating a potential breakout. The PPO and ADX lines have converged to form a narrow channel which is known as a "pinch". When these 2 lines begin to separate and the TRIX and +DI begin to uptick it is a signal that the pinch play is starting. This has begun to happen and is a very bullish indicator for the stock. Other indicators that signal the pinch is starting are Full STO and PPO lines have now moved down to converge with each other, the +DI and TRIX lines are up ticking, RSI is below the 30 and Williams is below -80 indicating the stock is very oversold.

Parabolic SAR
One more thing to note from a technical stand point is the SAR is currently around .004. This is a key trend line and once the price has crossed it we should see a full trend reversal. This is a very strong signal and something to keep an eye on the next few days.

Filling the Gap
All this being said, I feel the price could actually reach .10 by the end of summer. If support is found on the neckline I expect to see the gap filled as the trend continues to reverse up to previous highs.

I have created an annotated chart that shows all of these indicators in place, along with comments for the indicators mentioned above, you can view it here:
http://stockcharts.com/h-sc/ui?s=EVXA&p=D&yr=0&mn=6&dy=0&id=p41554418084&a=200335406

Can charts predict the future?
Technical Analysis is the forecasting of future financial price movements based on an examination of past price movements. Like weather forecasting, technical analysis does not result in absolute predictions about the future. Instead, technical analysis can help investors anticipate what is "likely" to happen to prices over time. Technical analysis uses a wide variety of charts that show price over time.

Is EVXA a Scam?
Enviroxtract, Inc., is an emerging technology company, and owns worldwide licenses for environmental clean-up and mitigation technologies. They acquired Red Bag technology in January press release: "EnviroXtract, Inc. Announces Acquisition of a Technology License for Biomedical `Red Bag` Waste Incineration and Remediation GlobeNewswire(Mon, Jan 25)". The website for red bag is http://www.redbag.com/ .

There is detailed information about EVXA on the otcMarkets website showing it is a legitimate company:
http://www.otcmarkets.com/pink/quote/quote.jsp?symbol=evxa

Is EVXA address an empty lot?
There several mentions about EVXA being located on an empty lot. This is misleading information because Google Maps shows an outdated satellite image of the address depicting and empty lot. If you check Yahoo! or Bing Maps you will see a more up to date image showing a home located at this address. Many pink sheets are run from a home office, this is not unusual.

Bing Map (I used tinyurl to shorten the link):
http://tinyurl.com/27ake3c

Related Links
During my research, I have found the following sites that feature EVXA hot as a pick or on a watch list. EVXA is without a doubt on the radar.

http://www.hotstocked.com/article/2251/enviroxtract-inc-pink-evxa-stock-jumps-the-crest.html
http://www.emailwire.com/release/41858-Stockmarketwatchlistcom-s-Hot-Stocks-to-Watch-EVXA-VIPR-SSWC-CVSL-XOM.html
http://www.i-newswire.com/deltron-says-it-has-prevention/41830
http://www.thefirstreporter.com/press-releases/stocksource-us-reports-mid-week/

I hope this helps and thanks for reading my post.