Aurcana Corporation (CVE:AUN) (PINK:AUNFF) stock price started to lose momentum after the most recent run-up failed to break the resistance at $1.04 per share.
Last week the stock attempted to challenge its current 52-week high of $1.07 per share. The recent moves attracted trading volumes significantly higher than the average 1.56 million. However, the situation now seems to be turning into a double top, which could encourage bears to prey on the inflated price.
The most recent bullish action was likely encouraged by comments on the media. The stock was mentioned in a financialpost article among the most optimistic ones to be held among the small cap miners. Clearly it is closely watched by the traders of mining stock and any overvaluation will be limited.
Since there were no recent ground breaking news, the odds of price going into into a breakout are pretty slim. If it does though, it could repeat the stock’s massive appreciation from 2007, but likely in a more volatile manner and the chance of a large scale collapse would rise indefinitely with every uptick.
