American Creek Resources Ltd. (CVE:AMK) (PINK:ACKRF) lost 13.3% yesterday during a correction to the previous price rally.
It was interesting to see some bullish action towards the end of the day, which means the bullish momentum might not have totally disappeared. The stock had attracted over 1 million in trading volume on Tuesday and showed only an average interest during the correction meaning most traders watched from the sidelines.
American Creek had no recent news, thus the breakout was a purely technical one, possibly created by elimination of short positions.
The share price basically stays in consolidation since the beginning of Ocober 2011. the move above 5 cents per share meant a breakout but further resistances remain at 7 and 9 cents per share.
In their latest financial reports the company showed a negative $88 thousand in working capital and had a stock dilution rate of 43.3% over the last year. This caused a temporary decrease in share price even outside the consolidation range but a later comeback also showed the stock price has pretty much bottomed out and includes all the negative sides of the business in its current value.
American Creek is a development stage company with twelve mineral exploration projects in British Columbia.
