Yesterday was a rumination day for Bowood Energy Inc. (CVE:BWD), (PINK:ROAOF) stock. After days and months of upward direction, BWD stock closed the trading session hinting at a new 52-week high and with no price change.
These days, the announced positive financials and operational results of the company for the three months ended September 30, 2010 rushed again BWD stock.
Though the reported slight decline in production as compared to the second quarter, investors were more interested in the company’s expansion in the southern Alberta Bakken play.
At the beginning of September, Bowood Energy Inc. announced that it had entered into an agreement with Kainaiwa Resources Inc., a corporation wholly owned by the Blood Tribe First Nation, to acquire through a leasing arrangement an interest in 60,640 acres net of lands within the Blood Tribe Reserve in Southern Alberta. Consideration for this acquisition was $14.13 million. The acquisition was closed at the end of October.
This event, as the chart here shows, pulled fast and strong the company’s shares up.[BANNER]
Despite the fact that BWD is in the overbought area, the drawn on the BWD’s price chart Doji presenting investor uncertainty and the technical indicators still give some signals that a further upward move for the shares is possible.
Today’s trading session will show whether investors will appreciate another BWD price soar and whether the hinted yesterday 52-week high will be lower than the day’s closing price. The other possible scenario would be a pull back in correction of the high investor emotions these days.
