Some traders got squeezes during last Friday’s bear session but that allowed the share price of BE Resources Inc. (CVE:BER) (PINK:BSRSF) to add significant gains and break out of established trading range.
BER share price moved up 30.3% over Friday’s trading session generating a 1.86 million trading volume which was nearly twice the average turnover. The stock price got out of a trading range between 10 and 17 cents, which was established throughout August 2011 .
The breakout wasn’t all that smooth though – it looked mostly like a short squeeze on the intraday chart and had no direct fundamental background to it.
The latest news published by BE was on August 24 and covered changed in the Board of Directors. There were no other significant events since, thus traders can only rely on technical review to predict further price movements.
American and Canadian stock markets tanked on Friday after inauspicious unemployment data report scared the masses. BER rallied during the day because traders searched for safer stocks and thus ended up buying stocks in gold mining or other prospective sectors.
Since the buying wave caused a short squeeze instead of a natural and steady appreciation any further rally in unlikely. The stock is known for its volatility and it poses a great risk even if there will be a morning spike follow up to the current situation.
