Orbite V.S.P.A. Inc. (CVE:ORT.A) (PINK:EORBF) spiked up on heavy trading volume today causing the company to step up and confirm there were no recent material events.
ORT.A stock price shot up 25% early into trading today upon no real development. The trading volume topped 7.3 million over the first couple hours of the trading day and was far above the average of 2.3 million.
The stock basically bounced after closing in on the support at $2, which was tested some time ago and is also a mentally important level being at a round number. The closest resistances for today are at $3 and $3.5. The price has already tested the lower one, and it seems to hold.
The initial buying pressure could have come from short squeezes, since there was no current news to serve as a catalyst. The company also addressed the activity of their stock today, saying they are unaware of any events to have caused such an interest. Because of that the momentum should be expected to fade in a short term.
The only news in May stated the company filed for another patent that covers the extraction process for rare earth elements. That was part of the company’s general effort to secure as many rare earths related patents as possible considering the anticipated boom in this industry.
The market cap reached $410 million with today’s spike up, though the company is only worth around $16.7 million in book value.
