Petrodorado Energy Ltd. (CVE:PDQ) (PINK:PTRDF) share price gains extended 20% on Friday, and the momentum seems to have been strong enough for correction not to bring it back down instantaneously. The price did bounce the resistance around its 50-day moving average on Tuesday though.
The double digit percent rally added to the recent price advance lasting from mid-December. This swing up could grow into something of scale if the price would actually break out above the 50 day average. The closest resistance up above is around 25-26 cents, meaning bulls would have a chance to see another 30% gain. Fact is PDQ stock did perform that well not so long ago, thus traders could still be excited to repeat the success.
Petrodorado didn’t have meaningful news since filing the quarterly report and issuing 7 million stock options a couple days later to pay the officers. Their stock has been declining for nearly a year and only found some support by the end of 2011.
The company currently holds a book value of $115.8 million, while their market cap is $94.1 million. Petrodorado had an impressive percent growth in revenues which topped $1.1 million over the last reported quarter. Offsetting this success they also recorded 22% stock dilution over the past year of operations, thus the situation doesn’t really favor bear or bulls much.
