Kilo Goldmines Ltd. (CVE:KGL) (PINK:KOGMF) could be heading for some heavy trading on Friday since the buildup in price action has left a tense situation from the previous session.
KGL added 10.9% to its share price on Thursday under one of the heaviest trading volumes recorded over the past year. The turnover topped 3.25 million shares, which was nearly 13 times more than the 90 day average of 258 thousand shares.
The price move happened because of the combination of technical and fundamental reasons. The price has recently broken out of consolidation where it had been stuck for more than half a year. Going above 20 cent per share the rally began generating thrust and a notable increase in trading activity suggests it could continue further.
Currently there is still a problematic resistance at 25 cents per share, but if it gets taken out KGL could rally another 3 cents, or 12%, which is within the usual volatility for this stock.
As for the fundamental reasoning behind the latest price increase – on February 2 the company announced some mixed news. First off the the changes to the board of directors. A director of the company, Jacques Bouchard, has resigned from his position. The board is currently looking for a replacement.
In the same announcement the company also reminded they will be participating in the Mining Indaba Conference 2012 in Cape Town, South Africa. The event will take place from February 6 to 9. After that they will also be present at the PDAC 2012 conference in Toronto, on March 4 to 7. These will be the two changes to improve the Kilo’s publicity and talk to potential investors in private.
