Solimar Energy Ltd (CVE:SXS) stock price shot up after the company got updated on the findings on properties neighboring their oil play.
SXS gained nearly 12% during Wednesday’s session pulling a trading volume of 2.7 million shares.
The move could push the price up to 10.5 cents per share, where the most recent resistance can be found. The trading volume is close to that of a price rally recorded in the second half of February, thus the chances are the move will continue until it actually hits the resistance.
The move occured afer Solimar announced to have new information on the potency of their Kreyenhagen project in California. The company pointed out that an independent assessment was carried out in the project area near the available well control. Solimar now has more reason to suspect that their own property includes thick oil shales.
This is only an informed guessing though. Testing will have to be carried out to confirm, but it still got traders’ attention.
From the technical point of view, the intraday actions showed that the recent price spike carried limited liquidity, meaning the stock has poor availability and small traders are not yet attracted to create additional supply. This can result in risky trading considering the small upwards potential left for this stock if no further price breakout occurs.
