Canadian Orebodies Inc. (CVE:CO) (PINK:CNOBF) got a strong price action this morning as bullish orders piled up overnight in reaction to the recently announced improvements in resource estimates.
Increased buying pressure was felt since late Thursday. The price gained a total of 66% over the past few sessions. After a short retracement yesterday CO rally got back into action supported by promising news.
The company announced on Monday, February 6, the initial independent estimate of the Haig Inlet iron project in Nunavut shows the land could hold up to 230 million tons of iron ore at the purity of 35.17%.
On top of that another project on the Belcher Islands was deemed to have inferred resources of 289 million tons graded at 35.47% iron.
These two announcements were evaluated overnight and attracted a substantial interest from traders. The stock price shot up more than 23% at the beginning of Tuesday’s session. The trading volume reached close to 5 million and stands out as one of the heaviest trading days for CO over the past year.
The stock still has confirmed resistance at 35 cents per share, which was obviously taken into account during the morning spike and has limited further rally for now.
