Simba Energy Inc. (CVE:SMB) (PINK:SMBZF) stock price collapsed after an earlier attempt to rally exhausted and forced a slight panic selling.
SMB stock price corrected down nearly 13.2% on Wednesday. The trading volume was close to 1.8 million which is roughly an average turnover for this stock.
Tuesday’s price rally could be related to an article on oilbarrel.com, which analysed the company’s potential and might have encouraged the bulls to play SMB. The price action was nearly in line with the usual volatility, but since it happened close to a support zone a follow up might happen.
Other comments weren’t as successful in keeping the stock’s value up. The price roller-coaster surrounded an interview, published on June 20, which mentions Simba among other junior oil and gas companies and briefly describes the potential these ventures have. The interview didn’t provide any detailed analysis, but rather concentrated on the broader picture.
There was no directly related news from the company itself. The price thus should follow technical signals rather than be influenced by the news. Recently it successfully found support around 16.5 cents per share. The recent historical price action shows that SMB is prone of large scale swings, and since it currently dwells near support, bulls could see another chance for profits pretty soon.
