Bears might start dominating Silver Sun Resource Corp. (CVE:SSU) (PINK:SSUXF) as the stock price has recently been inflated out of the blue.
The trading volume was at average on Tuesday, but the stock price still spiked up nearly 45%. A 13.1% correction yesterday left plenty of space for a further fall. Such a bearish assumption can be drawn from the way the stock price went up.
The gap up and rise on Tuesday brought only the percent gain – there was no liquidity to this movement, the spikes in price were large scale but scares and virtually unpredictable.
It’s no wonder the stock got a serious correction yesterday and bears could make sure that the price falls back to where it came from.
The company doesn’t have any recent news and the latest press releases are at least a month old. Those look promising at the first glance but also have a disappointing side to them as well.
On December 2 Silver Sun started trading on the OTCBB, but the price has been declining since.
October 27 SSU announced to have started production on their Cherry Hill gold mine in California. The company should have started trucking out the throughput to the mill since mid-November. The financial impact will be present in their next quarterly report.
At the same time it should be noticed the company might be digging into an empty ground. There are no proven reserves at Cherry Hill. The company has taken a substantial risk by advancing into production stage without a careful plan or even a feasibility study, thus traders might want to gradually jump off this stock before the next quarterly report comes out.
