Recently, traders had gotten very excited over Mira Resources Corp (CVE:MRP) (PINK:MIRXF), but the enthusiasm is clearly settling down and the progress made in state of commotion remains questionable.
MRP share price stayed flat during yesterday’s trading session as traders eliminated positions from previous day’s run. The trading volume topped 2 million on Tuesday as the price gaped up and formed a doji candle for the day, but it didn’t lead to anything special.
There is a substantial support at 35 cents per share if the price was to go lower from here. On other hand if it sticks to the short term appreciation, it would have to deal with resistance at 45 cents, providing swing traders a neat setup.
The stock is not influenced by any hot news at the moment.
The latest uptrend in price initially started around the time the company published their interim financial results and later follower-up by raising another $3.42 million through warrant exercise incentive program.
Before the warrants were exercised the company reported to have $13.2 million working capital so that adds up as another positive development. On the other hand Mira also reported a dilution rate to reach 53% over the past year and it was further increased by warrants exercise, upsetting the existing shareholders.
The last thing to look at is the market cap which is currently close to $50 million. That means there is not much space for the stock to break out. The company has no revenues, thus limiting the possible market value.
