Emerald Bay Energy Inc. (CVE:EBY) (PINK:EMBYF) stock price action could evolve into a significant rally on Friday if traders would rely on the technical side of the recent price movement.
EBY added 25% over the course of the last three sessions. The trading volume was over 2 million on Tuesday, which is massive compared to an average of 337 thousand per day.
The recent price action suggests the end of the price rally might be drawing near, but it would require a couple of days with similar volume and large scale price advances to confirm. This also might become a very tempting opportunity for bulls if the initial volume and price spike will attract enough attention.
There was no news behind the move. This means that fundamentally the rally is less sustainable and less prone to continue higher, but it can still rely on the technical side of the breakout.
The last news from Emerald said the company closed a private placement deal for $712 thousand. Not a large sum for any public company and far from enough considering the company has to deal with nearly $4.9 million in short term liabilities.
On the other hand this private placement can actually be associated with the start of an uptrend the stock price is still in. Although the fundamental situation of Emerald is far from good, such news seem to have an astounding effect when forming the market’s opinion on Emerald’s business.
