East Asia Minerals Corp (CVE:EAS) (PINK:EAIAF) stock price showed some bullish progress on Wednesday but the sustainability of this rally is questionable, especially with insiders dumping their shares into the action.
EAS stock price increased 8.3% during the last session. It also recorded a huge trading volume of 3.15 million. The 90 day average turnover is only 416 thousand so the huge increase in trading should have been noticed on screeners and attract an adequate interest from traders today as well.
There are two aspects though. The price failed to keep above resistance at 39 cents per share, but if it does stay above it today this could lead to a promising technical breakout. The possibility of it bouncing back down is not overruled though, because there is no real catalyst for the rally. The stock isn’t undervalued either, so it would need strong news to force a sustained price rally.
Insider trades data shows that 694 thousand shares were dumped during the large run-up, and most likely was the cause of why the price failed to break out. Further dumping is not out of the picture as well so there are hidden risks to this trade.
