Currie Rose Resources Inc. (CVE:CUI) (PINK:CUIRF) stock price rallied out of nowhere on Friday, providing a hard to catch opportunity and possibly setting the stage for further action.
CUI share price soared 25.7%, carrying a heavy trading volume that was more than twice the average. 1.3 million shares changed hands during the session as the stock price pushed up, breaking through resistances at 19-20 cents.
There was no recent news that could have triggered the buying wave. Intraday price action shows that most of the buying took place over the course of half an hour, which suggests short squeezes as the cause.
There was nothing that could have attracted attention to the stock before the price shot up. A follow-up on such moves is a rare occasion, but still possible considering that many traders will come across CUI in their screeners over the weekend.
The stock felt the positive sentiment since the company published their annual financial results for 2010 in the beginning of May 2011. Back then, the books showed some positive improvement:
- Annual expenses were reduced by 24.5% to $415 thousand;
- Pulled off net profit of $325 thousand (related to property sale and gain on investments), compared to $1.6 million loss last year;
- Ended the year with $2.2 million in cash (raised through equity funding);
- Recorded dilution to shareholders of 34.8%.
