Pacific Gold Corp. (PINK:PCFG) has just made a significant correction to its remarkable up-move which started at the end of May this year. This week, market participants witnessed how something, which has been achieved over the course of three months, can be abolished in the blink of an eye.
The dramatic drop in PCFG share value happened on a specific technical set-up called double top. PCFG hit the 52-week high for the second time on Friday last week, but it was unable to move above this critical point.
When the next trading session on Monday finished, it became clear that PCFG lacks the impulse to score a new 52-week high as it fell 4% on a volume of 7 million shares.[BANNER]
The response of the market was ruthless on the following session. Spurred by the bearish double-top configuration, traders started selling the stock which later created an avalanche of selling pressure. PCFG finished the black Tuesday with a 30% drop in the share price and a volume of nearly 30 million shares.
At that point, PCFG had dropped right to the 50-MA which is another critical technical point. Unfortunately, in the last session PCFG breached this level as well and lost another 20% of its share value.
The inability of PCFG to maintain the support at 50-MA was a sign that a serious correction period has started. The next level to watch now is the support at $0.03 which was established in June this year.
