Border Petroleum Corp (CVE:BOR) (PINK:BOPFF) stock price is attempting to defy the established downtrend but still has to provide some confirmation.
BOR gained nearly 18% on a trading volume that was the second heaviest for a year. Close to 1.7 million shares changed hand during the session, which was substantially above the average 238 thousand. Concurrently, the stock price broke through the 50-day moving average but stayed inside the general downtrend, thus making it unclear if the rally will extend without problems.
The only news issued lately was a warning describing how Macquarie Group Limited acquired 33.3 million shares of Border, which represents 14.86% of the total common stock issued. This large acquisition might encourage traders to consider the stock price as having reached a bottom.
BOR bounced the 18 cents support at the end of November, which reinforced this level as trustworthy. However, if the price continues rising it will encounter strong resistance at 25 cents per share and might end up stuck in this range.
The rally draws some strength from the quarterly results which were announced last Tuesday, November 22. However, the results were pretty controversial.
Border greatly improved its book value which is now $26.96 million and substantially above the current market cap of $19.7 million. On top of that, their revenues increased nearly 4-fold on a year-over-year comparison. The drawbacks are substantially increased net loss and 43.9% stock dilution recorded over the year as a result of Canflame Energy Ltd. acquisition by using stock.
