Douglas Lake Minerals, Inc. (OTC:DLKM) has been going through bearish fields in the last couple of days. Since the beginning of last week, DLKM has been constantly sliding down, making traders anxious about their investment in the company.
Surprisingly, the slump of DLKM stock began right after the company issued a pres release concerning its gold exploration in Tanzania. On Monday last week, DKLM announced it had intersected numerous gold bearing zones including visible gold during the first phase of drilling at Magambazi and Kwandege targets.[BANNER]
Certainly, after the news was publish a period of more intensive trading followed as the generated volume during the session exceeded 2 to 3 time the daily average. However, selling pressure ruled the whole period. Thus, one week after the drilling results were announced, DKLM stock has dropped down from $0.38 to $0.28.
From a technical point of view, trending indicators also turned adverse to the stock. The MACD took a bearish stance in the middle of last week and so did the short-term moving averages shortly after that. For two months now, DKLM has also been trading below the 50-MA line.
With this unusual response from the market to the announcement, it is difficult to discern what forces drive the share price of DKLM at present. It is very likely, though, that DKLM stock is affected by the declining global prices of gold. So, seemingly, DKLM will stay interconnected with the global conjecture in the short run as well.
