Encanto Potash Corp. (CVE:EPO) (PINK:ENCTF) stock price had another surge up as traders are getting anxious about the upcoming voting on land designation which could provide an opportunity for EPO to expand their holdings.
Encanto’s stock price extended up 18.8% on Monday under a trading volume of 5 million, which was more than 4 times the average of 1.2 million.
The reasons for the latest price run up can be linked to he recently surfaced opportunity to add new lands to the company’s joint venture agreement with Muskowekwan Resources Ltd. and Muskowekwan First National. Traders might be getting excited as the new additions will be part of the sub surface land designation vote held on February 25, 2012.
Intraday price movement patterns show a couple of very tidy mini breakouts which suggests the price push was mostly technical. The daily candle ended up without an upper shadow, which is usually a bullish sign promising more action during the coming session. A very similar situation for EPO happened in the beginning of February and the stock price gapped up the next day.
