Poynt Corp (CVE:PYN) ended the last week with an aggressive 27% gain on the share price, adding to the continuation of prolonged uptrend and gapping up today.
The company also news by the end of the day on Friday, stating they are expanding the Poynt application to be used by iPhone owners in the Australian market. The application is actually a freeware, thus the news don’t really provide a ground for any material changes within the business.
The price move was mostly technical on Friday, it went into consolidation since midday and continued until the end of the day. Such a behavior often leads to another similar price jump the next day and with actual news in play it gapped up. Such a layout however instantly met resistance at higher grounds.
The price is heading for a resistance at 30 cents. Breaking through the 25 cents has allowed to secure the higher ground as the price heads towards levels beyond 30 cents. Trading volume is staying inflated thus a further price rally remains a possibility.
25 cents level is holding for now and if profit taking wont bring the price back down the uptrend might have good chances for continuation in the coming few sessions. The increase in volatility doesn’t bid well though. Erratic and large price swings means that there is a lot of buying on momentum, not based on fundamental events. When trends go into such a state, it is a sign of upcoming reversal.
