Although the stream of announcements about Cotton & Western Mining Inc. (PINK:CWRN) ceased roughly a month ago, the company’s stock outlined an upward curve on its stock chart in the last three days.
Typically for a caveat emptor company, it is difficult if not impossible to find a reasonable explanation of the price jump. Most likely it was prompted by technical factors.
In fact, the stock as if entered an accumulation phase at the beginning of the month and a short price rally occurred on this basis. On Monday, the short term moving averages made a bullish cross, after which the lines turned into a support for the CWRN stock. [BANNER]
The MACD indicator was giving ambiguous signals during the accumulation phase, but eventually a bullish cross formed even before that of the short term moving averages. Another common indicator, the ATR, was also in a bullish mode.
However, despite the technical configuration, it is still uncertain if this was the reason behind the stock surge. The company was marked with as caveat emptor a long time ago and there is no sign by the SEC that it will get removed soon. This fact will inevitably continue to influence the stock value, drawing it further down the chart.
