The Westaim Corporation (TSE:WED) (PINK:WEDXF) stock price is trying to force through short term resistance but had no success thus far. The only thing this stock did manage is to generate enormous trading volume.
WED pushed 3.7% higher on Friday under a humongous trading volume of nearly 7.4 million, which was way above the average 615 thousand. With such a number the stock made it among the most active stocks on the Toronto Stock Exchange.
Westaim had no recent news thus the trading activity was likely a result of short squeezes that are prone to happening on Fridays or just bull following a technical ascending triangle pattern.
The stock price advance stopped right at the resistance at 56 cents per share, which has been tested three times in the recent month. This resistance is currently stopping the short term uptrend and might lead to interesting developments.
Westaim currently holds a market cap of $325 million which is below their book value of $402 million, making it easier for bulls to push the stock price higher. The substantial decrease in net profits was the reason this stock got so low, but the situation is slowly improving. On the other hand, the constant negative cash flows remain a significant issue.
