Abacus Mining & Exploration Corp. (CVE:AME) (PINK:ABCFF) stock price reached a new high on Tuesday but it’s questionable whether the gains can hold based only on a recent fundraising.
AME had the heaviest trading volume for the past year as the stock price advanced 14 %. Amid the session it had hit a new 52-week price high at 29 cents per share but ended the session slightly lower at $0.28.
A steep spike in price was recorded amid the last trading session, which indicated that most likely shorts got squeezed and the price increase is likely not as sustainable as it appears from the first sight.
There was no news that could be directly related to the price move. The stock could’ve merely created a breakout opportunity, which was fed by shorts getting squeezed.
On the other hand, this was part of a three day appreciation and thus the reason for the breakout could partially be assigned to the most recent news announcement. On Friday, March 16, the company said to have issued 14.5 million units priced at 22 cents per share. The total proceeds from the sale were near $3.2 million. Warrants are convertible at 32 cents per share for a period of one year.
