Atocha Resources Inc (CVE:ATT) had the share price spike up on a serious trading volume over the last session but the lack of associated news means the move won’t last.
ATT stock price spiked up 13.3% last Friday and also turned a major trading volume of 1.8 million which was significantly above the 90 day exponential moving average of 255 thousand. However, the price action wasn’t as outstanding as it might appear from these numbers.
Despite the heavy trading activity ATT didn’t manage to break above the long time resistance at 9 cents per share. The price movement didn’t stand out from the general volatility as well.
Heavy trading volume means that more volatility is likely to come. At the same time the move didn’t have any official events behind it and seems more like a random fluctuation. The stock price is currently trapped between 7 and 9 cents, providing swing traders with a very risky playground.
Atocha didn’t have any news on the day, but early developments might still be affecting market participants.
A week ago the company announced to have started an exploration program on their rare earth Tresor Nord property in Quebec. Geophysical surveys and sampling will be carried out every 50 meters on a 32 kilometer line.
