Confederation Minerals Ltd. (CVE:CFM) (PINK:CNRMF) got involved in a likely unsolicited promotion, but it didn’t do much to help the share price action.
Confederation was trading slightly heavier than normal recently after it was covered in a newsletter published by wallstreetgrand.com two days ago. The service was rendered without compensation as it appears from the included disclaimer.
The effect of this ‘promotion’ remains questionable. Unlike their previous pick, the momentum was really building up on this one when the recommendation was made to subscribers. Whether or not the increase in trading activity was a results of the publicity remains under question, but those who bought got messed up seriously after the stock collapsed 14.9% yesterday.
CFM also broke below the support at 66 cents, which bodes well for the short sellers and suggests a price action quite contrary to the one suggested by the wallstreetgrand.com. A trading volume was not meaningful on this drop though – it barely beats the average of 190 thousand.
The company had no recent news that could have a lasting effect and the stock was in consolidation for the past half a month, continuously testing the now breached support. This support at 66 cent actually held for multiple months. Thus, this low scale breach might not be sufficient for a breakdown to occur, but it clearly shows the price is not going to bounce up. At least without news.
