Canadian Overseas Petroleum Limited (CVE:XOP) (PINK: VELXF) remains at the limit of collapse with indecisive trading going on in reaction to the latest news.
XOP stock is struggling to sustain the price position after breaking below the support at 50 cents. Yesterday’s price action ended up with a doji candle for the day, showing that bulls and bears remain indecisive.
The stock had a strong trading volume on Wednesday, but the price didn’t manage to get back up back then, and it is feeding the negative sentiment although there was rather positive news issued lately.
The recent announcement, made on June 7, 201, said the company will be able to acquire additional interest in the UK North Sea. Under the farm-in agreement made with SSE E&P UK Limited, the company will be able to acquire 50% of SSE’s working interest in Lower Toad exploration prospects if they cover 16.67% of the total drilling costs.
The company plans to undertake efforts to drill 6 wells in the North Sea during the coming 15 months. The work will be done under agreements made with co-ventures in December 2010 and February 2011.
That helped to sustain the price from falling further down, but there is still a lot of negative sentiment because of the prevailing downtrend in play and the news didn’t provide for an instant measurable fundamental improvement.
