sti_chart.pngStrategic Resources Inc. (CVE:STI) (PINK:SCCFF) added impressive gains during the last trading session, but without proper catalyst it seems like a single time event.

STI shot up 66.7% during the last trading session generating a heavy volume of 2.43 million, which was more than 5 times larger than the average turnover of 466 thousand. 

Strategic Resources didn’t have any specific news that could have caused the buying pressure. The trading data on intraday price action gives a feeling of a short squeeze pushing the price up before anything else.

STI stock is generally very illiquid on common days and usually sticks to the boundaries of prolonged downtrend. This breakout was in line with the common volatility of STI and thus traders should not expect downtrend reversal or even a short follow up to happen.

strategic_resources_logo.jpgTechnically share price found resistance at 50 day moving average which is currently at 5 cents. An example from late July shows this level isn’t very hard to breach under heavy volumes, but even if STI value would go higher it could crash just as fast.

A partial catalyst for the current rally was a general buying pressure on mining related stocks as a reaction to vague market conditions. If the market continues to show weakness some more buying pressure might arise, but with such a low caliber stock it isn’t very likely.