Energold Drilling Corp. (CVE:EGD) (PINK:EGDFF) stock price spiked into new highs recently and appears to have secured the new valuation under the lack of selling pressure.
EGD broke the consolidation period and spiked up 9.1% on Wednesday. The trading volume was 644 thousand, far above the average 121 thousand and suggested that the new valuation was welcomed.
The stock value was swinging around $4.2 per share before the move. It was the second time it spiked up like that over the past two weeks. The trading volumes were heavier than normal and rising during this time.
All this preceding action thus leads to think that the nearly 2% correction on Thursday was a setback that will not trigger a large selloff. The comparatively small trading volume of 132 thousand also showed that people are not rushing to sell here. However, the previous case suggests it is likely to enter into consolidation.
The recent price spike was a technical echo as the market remains exited by improved financials of Energold. The company published the original filings on November 28.
The books depicted a promising view:
o Working capital increased to $71.96 million;
o Revenue nearly tripled to $47 million;
o Net profit increased 8-fold to 8.2 million;
o Stock dilution was 19.3%.
