Explor Resources Inc. (CVE:EXS) (PINK:EXSFF) jumped back up following the volatile price action and possibly reacting to the news announced a week ago.
Share price gained 12% during this week’s first trading session, generating a strong trading volume of 520 thousand, which was roughly twice the 90-day average. The stock also gapped above the resistance at 80 cents, providing an interesting setup for short-term traders. Since there was no directly related news, it might prove to be an ordinary gap, which will be filled by dropping share prices.
On the other hand, it could be a delayed reaction to the mining operations update released on Tuesday, April 19 2010. The company then announced to have found 9.41 g/t gold mineralization over 7.5 meters on Timmins Porcupine West property when additional 8 drill holes were made under the phase III drilling program.
EXS stock is also prone of volatile moves, so two digit percent changes in price are rather common. Quick and large scale correction should be among the most probable outcomes for the current situation. Price action should be followed to see if it doesn’t gap further, but the large shadow on the last days candle pretty much discards this possibility.
Explor Resources Inc. is an exploration-stage company with five properties in Ontario 4 properties in Quebec and 2 properties in Nouveau-Brunswick.
