Yesterday, Searchlight Minerals Corp. (OTC:SRCH) made a slight rally after a continues downward movement.
The stock went up 9.21% to $0.83 on a volume of nearly 500 thousand shares. The generated volume was less then the daily average.
On the other hand, the volume has been increasing in the last three days, which may hint at a probable momentum impulse. However, at the same time SRCH is tapped by the 50-MA which acts as a resistance for the stock at the moment.
However, unless SRCH breaches the moving average, the downtrend is likely to continue, especially given that the MACD has been in a strong downtrend for over a month now. Moreover, the MACD had crossed the zero line at the beginning of the week.
It is visible that SRCH has previously formed a support line near $0.7 which is an area where the stock might consolidate before the next big movement.
In addition, it can be pointed out that there hasn’t been any press releases or reports issued recently to support the stock. In this regard, SRCH will have to struggle with the technical set-up on its own in the next couple of sessions.
