Triangle Petroleum Corporation (OTC:TPLM) is accumulating volume, along with a mild price rise. Initiated by the technical signals, the swing up has little chances to break the consolidation range though.The recently recorded golden cross in a negative direction is usually a sign of weakness, but the sudden increases in the trading activity and in the volatility did their thing. Both the 50-day and 200-day moving averages turned up shortly after the crossover, thus the appreciation had the support. 200-day MA is a strong support level and future bounces are very probable.[BANNER]
Fundamentally, the company looks quite strong due to the vast portfolio of properties they control. The lack of directional and substantial top line developments and a huge number of outstanding shares are the key factors behind the low PPS.
Triangle underwent management changes in the beginning of 2010, which resulted in increased public expectations. The new management has pushed forward an acreage of their properties, but there’s still a lot of work to be done before the company starts extracting any resources. The development and acquisition costs of TPLM properties require a lot of capital, which also contributes to stock dilution as equity funding is one of the main ways to raise funds.
