Eastern Platinum Ltd. (TSE:ELR) (PINK:ENPMF) stock has a technical situation lined up for a possible price breakout. Traders have pushed the price close to the resistance and an increased trading activity favors the bulls.
ELR share price added 8.4% over the last trading session under a twice the average trading volume of 10.7 million. There‘s still some resistance at 90-92 cents, but considering the significant price action traders could see a breakout during the coming session.
On the other hand, the current price rally is more like a correction after the price went down on the last rally attempt. If the price doesn’t breakout it will likely end with a price consolidating as it seems to have found the floor at 80 cents on the longer term downtrend.
The company had no news recently, thus the price isn’t going up on fundamental catalyst. The stock does seem to be oversold though. Eastern holds a market cap of $799 million and the company has a book value of $970 million. Revenues were going up for the past year on a quarterly basis and only went down over the last reported quarter resulting in a net loss for the company.
