Castillian Resources Corp. (CVE:CT) (PINK:CTIIF) barely traded on Tuesday after it had hit a new 52-week low on Monday.
A comparatively active trading session moved the stock down 15.4% that day, generating over 2 million in trading volume.
Thing is, Tuesday’s session showcased the third consecutive drop in price which is clearly notable on stock screeners. It also brought the price down close to its multiyear support at 4.5 cents per share. CT has a history of strong bounces from this level. If things would repeat the price could potentially double.
Of course even if it bounces, the stock has now fallen for a comparatively long time and it would likely not be a quick recovery unless some news could speed things up.
Another thing on the plate is a possible stock split, which is proposed for consideration during the annual meeting of shareholders on May 9, 2012. The company wants to do a 1 for 5 reverse stock split, which would bring their outstanding share count down to 66.4 million and would automatically increase the share price. From a technical perspective this could turn out bad since traders could then ignore the preceding technical situation and bring the price even further down because of unclear support zones.
