Explor Resources Inc. (CVE:EXS) (PINK:EXSFF) got the stock price fired up after the company raised the resource estimates for their Timmins Porcupine property.
EXS stock price gained 33.3% during the second half of Tuesday’s trading session. The move expanded the preceding rally, which was also very strong and had already broken outside the prevailing downtrend. The price spike was accompanied by 1.24 million in trading volume which was nearly 8 times heavier than normal.
The large price advance was a reaction to the announcement of new resource estimates for the Timmins Porcupine West Gold property in Ontario. The estimates were raised to 770 thousand tons of 5.13g/t gold indicated and 5.5 million tons of 3.97 g/t gold inferred, based on a cutoff rate of 2.20 g/t.
The zones identified have a strike length of over 2 kilometers. The company remains focused on exploration and hopes to expand the known resource base further.
The news was actually pretty common for exploration stage companies, thus the price rally shouldn’t be too sturdy. The preceding rise in price suggests that traders were anticipating the good news in advance and this just put an end to that.
From a technical point of view, the big price spike on this rally can be interpreted as a sign of upcoming reversal. The large advances are often harbingers of buying pressure exhaustion. However, it wouldn’t be surprising if it continued for another session or two.
The most notable resistance on the way of this rally is at 50 cents per share and there is support at around $0.35.
