Petro One Energy Corp (CVE:POP) (PINK:CUDBF) stock value continues to increase after the company announced to have found a new oil pool, but the last day’s price action was controversial.
POP gapped up to end the day with another 26% gain as the price rallied for the third consecutive day securing a total gain of 138% on the share price. Technically, this looks like the end of the rally though and short sellers are very likely to step in over the next session.
The price action formed a doji candle over the last sessions under a slightly decreased, though still very significant, trading volume. That is one of the most reliable indicators for trend reversals.
Share price shot up after the company announced the discovery of a new oil pool. Petro One identified a previously unknown light oil pool during the summer drill program on J5 property in Canada.
The new pool holds high quality properties – a comparatively fast flow rate without additional stimulation under a stable pressure. The oil is flowing to the surface on its own from the depth of 736.5 meters and there is currently no need for pumping.
This was the first drill hole done on the property by Petro One, thus making the result even more impressive. Traders will likely wait for more data on the new reservoir, but slight price increases are very likely in the mean time. More tests are being run and results will be announced to the public when available.
