Oceanic Iron Ore Corp (CVE:FEO) (PINK:FEOVF) is coping with share price volatility but seems to favor bull in this tense time.
FEO had gained 16% over Thursday’s trading session but lost all of that during the rapid selloff on Friday. The only good news for bulls is that the diving price wasn’t accompanied by a significant trading volume, which means that the price likely won’t fall further the next week.
The stock generated a trading volume of over 3 million during the uplifting trading session on Thursday. It was 9 times larger than the three month average turnover of 342 thousand and showed how bullish moves dominate over the bearish ones.
The company didn’t have any recent announcement that could have caused the volatility right here, but it could have been an echo of the last piece of news.
The last press release came out on December 23 announcing a closing of a private placement that had taken place a week earlier. The company issued 5.75 million units at 35 cents each and received proceeds of just over two million dollars. As usual units consisted of one common share and half of a share purchase warrant, which is exercisable at $1.00 per share.
