Porto Energy Corp (CVE:PEC) (PINK:PNRXF) spiked up randomly promising a hard fall in price over the next session unless the company steps up to clarify the situation with some unexpected news.
PEC traders are looking for an explanation on the most recent price run and IIROC might want to hear it from the management as well. Strangely enough, the stock trading has not been halted and should start trading with the opening of Friday’s session.
What traders are most afraid of is the large possibility of PEC price tanking the moment traders are allowed to take profits or generally ditch their shares. The lack of news makes this a very unstable situation, but a simple communicate from the company wouldn’t do much either.
The stock price gapped up after showing a small increase in price over the preceding sessions, thus it looks like a purely technical thing. The gap up is a bit more mysterious, but technically it is reassuring of an impending correction in the current situation.
The last news report from the company provided an update on their oil and gas operations in Portugal but didn’t have any game changing revelations about it. Porto was only done with the 3D seismic programs and will try to attract joint venture partners with what they found to date. The update didn’t have a noticeable impact on the market whatsoever.
