Endeavour Mining Corp (TSE:EDV) (PINK:EDVMF) stock price action confirmed it is prone to form a trading channel and likely won’t rush in any direction before the recent merger is fully dealt with on the inside.
On Wednesday EDV stock price closed in on the lower part of its current price channel but it didn’t go below the support at $2.4 per share. The trading volume was significant 550 thousand, 1.5 times above the average 351 thousand, but it was not outstanding enough for this gap down to mean much.
It is very likely the stock price will come around and go back up to the top of this channel, the only question is when.
The company is currently engaged legal dealings related to their merger with Adamus Resources Limited. The merger was closed on December 20 and EDV now has its shares trading on the Australian Securities exchange in addition to the exiting TSE listing.
The stock price on the Toronto Exchange appears to have already reached the value representing an increase in worth from this merger. It is probable that share price consolidation will take place until the final legal dealings and business integration are fully complete. This can provide a lot of opportunities for swing traders on both sides.
