Pinecrest Energy Inc (CVE:PRY) (PINK:PNCGF) stock price burst up on what seems to be an ordinary technical bounce, but it still attracted a lot of attention.
PRY stock price increased 6.5% during Tuesday’s trading session. The move looked much more impressive because of the massive trading volume of 6.1 million which was more than three times heavier than the 90 day average turnover of 1.96 million.
During the action the price bounced the bottom at $1.70 per share. The heavy trading volume indicates the bulls might get lucky with another price push today as well. The last time PRY bounced this same level the stock value doubled in a couple months period.
After the move the stock got listed among those having the heaviest trading volumes on the Canadian Venture Exchange. Despite the sudden increase in traders’ attention the company had no recent news.
Traders speculate the move might be related to the recent gas industry developments, including a large discovery of share gas in British Columbia announced by Apache Corp.
On the technical side the price pattern looks like an open invitation for further bullish action. On the intraday chart it can be seen that the stock held its gains pretty well towards the end of yesterday’s session. A bullish position at this point should be worth the risk because there is a tested support at $1.70 allowing for a drop of only around 6% if no bad news come out.
