A recent heavy trading volume recorded for Iberian Minerals Corp. (CVE:IZN) (PINK:IMINF) attracts the attention, but the stock doesn’t seem very trustworthy.
IZN stock generated a massive trading volume of 1.7 million on Friday on one of the common volatile share price moves. The price gained 8.7% and stayed within the established price channel between 90 cent and $1.00.
Somewhat of a gap up is a possibility for Monday’s opening since the share price ended the day at the top of the intraday trading range. However, traders should not get their hopes up -despite the heavy volume, the price movement was as messed up as it can be – there was virtually no liquidity to it.
From the intraday action, it appears as if the price jumped on several orders at best. There was no recent news to aid the share price move.
The stock has been stuck in a trading range after a preceding uptrend was unable to push it above $1.00. The price originally rallied when the company announced to have closed a $3.6 million private placement of convertible debentures back in June 2010. The prolonged uptrend that followed topped out in February this year and the price is consolidating ever since.
