Small Cap Highlights
Electronic Game Card, Inc. (OTCBB: EGMI.OB)
For
Monday, November 12^th, 2007

Tony Golan
Chief Technical Analyst
StockProfit.com™

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This week I chose to highlight the chart of Electronic Game Card, Inc. (OTCBB: EGMI). For much of the past year, EGMI was in a long-term down-trend, making lower highs and lower lows below a declining 200-day moving average. However, all that changed in mid-April, when EGMI crossed back above the 200-day moving average. After a brief pause, EGMI started trending back up and hasn't stopped yet.

The nice thing about the up-trend in EGMI is that it has gone on for about seven months already. With every successive rally, the distance between the price and the 200-day moving average has increased, indicating good strong momentum.

EGMI has just undergone a correction against the trend and appears to be in the process of turning back up. As long as the pattern of higher highs and higher lows in EGMI remains intact, the up-trend is more likely to continue than to reverse. Once the stock breaks below a previous low, the up-trend is most likely reversing back down. For EGMI, that means a close below the October 5th low of 0.60 will indicate that the up-trend in EGMI is reversing back down.

Tony Golan
Chief Technical Analyst

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