Hana Mining Ltd (CVE:HMG) (PINK:HNMFF) stock price action got wild after the company decided to cancel a significant portion of stock options.
HMG is up nearly 16% this morning as traders reacted to the recent news on stock options incentive. A blackout in information was announced by the management until further notice, which also meant the options to purchase 2.7 million common shares, which were granted on February 27, got cancelled. These options should’ve been granted to officers and employees.
The excited stock price now struggles to take out resistance at $2 per share, which could lead to a short term breakthrough in price development. The now-canceled options should’ve been convertible at $2.13 per share and this value could get picked up as the most attractive short term target for the market price.
If HMG doesn’t manage to take break above $2 per share, this will likely be quickly abandoned by momentum traders and we could see a significant correction coming intraday or tomorrow morning.
The news weren’t hot enough to sustain the price rally for long, thus it mostly depends on the technical situation, which is currently unclear.
