Aroway Energy Inc (CVE:ARW) (PINK:ARWJF) showcased another strong price push after nearly falling of the established uptrend on a controversial reaction to recent news.
ARW stock price gained roughly 25% over the past three sessions as it continued going higher despite questionable strength of this rally. The trading volume isn’t very spectacular and tends to stay close to its daily average of 382 thousand.
The stock price still managed to break out spiking above 64 cents per share resistance and now troubling the traders with a question whether the rally will hold its momentum without an adequate trading volume.
In fact, the price spike didn’t happen all out of the blue. Last week Aroway did have encouraging news that have caused a ripple on the market.
On December 14 Aroway declared that their production in 2011 was already larger than expected. The company had a production target of 600 boed but now stated they will end the year with 669 boed which is 11.5% better. Concurrently the company announced to have completed two additional acquisitions securing working interests in 5.5 net sections of land including one producing well and four well bores.
The initial market reaction to these news occurred as a selloff though and it lasted for three days before bouncing support at 55 cents.
