Nebu Resources Inc. (CVE:NBU) (PINK:NEBUF) price rally showed some signs of possible over extension over the past two sessions, but managed to stay within a range that allows for speculations.
The stock price rallied 30% last Friday, attracting a comparatively huge trading volume of 949 thousand, way above the average of 153 thousand. It was repeated on Monday as well, but with a much smaller 3.85% price gain and a shooting star like candle for the session which set a precedent for another correction.
On the other hand, the price ended up without a parabolic extension to the existing uptrend which provides mixed indications and might not play out negatively.
The company also had quite positive news recently, which favors the price increase. A week ago, on January 9, 2012 Nebu signed an option agreement for an option to purchase a claim in Cork Lake property. The press release emphasized this land is 45 km away from Aurico Gold Inc.’s Yound Davison mine in Ontario.
Several targets have already been identified and apparently drilling will commence as soon as possible. Geophysical surveys are to take place simultaneously in attempt to find more gold rich zones.
While the news added some substance to the price uptrend, it had initially emerged out of the blue with no news in support and thus the degree to which NBU price can stretch up remains unclear.
