Teranga Gold Corp (TSE:TGZ) attracted a significant attention from traders during yesterday’s session despite the fact that the company had no news at all.
The trading volume increased to 820 thousand on Monday seemingly out of the blue. The 90 day average turnover for the stock is only 138 thousand thus such an increase naturally attracts attention. Unfortunately, there were no direct news that could explain the whole increased attention. TGZ stock price merely moved, sticking with a 0.45% gain for the day and demonstrating indecision among traders.
From the technical point of view the stock is trading close to the final real support zone at $2.20. If this would be breached, the stock could very well repeat the massive volatility play it already showed a month ago. There was temporary breakdown in early August, which resulted in huge price swings but lacked the volume for any sustainable changes.
Currently, the company holds $552.6 million market cap, which is an appropriate valuation in their position. The business is worth around $315 million based on the books. Another reason why it hasn’t dropped further yet is because of the industry they’re in. Gold stocks are loved by traders nowadays.
