Horn Petroleum Corporation (CVE:HRN) (PINK:HPMCF) hit another yearly high after the company fed the market with a pretty much meaningless update.
On Monday, HRN reached another 52-week high and ended up with a 14.8% price gain. The accompanying trading volume was 1.8 million. Although significantly higher than the average of 381 thousand it still didn’t stand out too much from the recent activity. The stock has a strong uptrend in place since the beginning of March and the trading activity has been very high all the time.
This last price run should’ve been much more stable if bulls were to expect continuation. On the other hand, it now stayed within the established uptrend, which means it could still continue going up, but in a more conservative fashion.
Last week the stock has been hitting new highs without even having news. Yesterday the management, clearly having seen the effects of circulating rumors, issued another update. It didn’t contain much information, just the current depth of the Shabeel-1 well that Horn is drilling.
This is why the stock price didn’t manage to hold the gains. It is very likely to go into a short consolidation right now as it did after the big spike up last week.
