TVI Pacific Inc. Stock (TSE:TVI), (PINK:TVIPF) Climbed to a Previous Resistance Level

Yesterday, for the first time in the last twelve days the stock of TVI Pacific (TSE:TVI), (PINK:TVIPF) managed to break through the resistance level of $0.90, moving up on the Toronto Stock Exchange (TSE). Maybe, it was much more prominent that this time the rise was confirmed by the huge turnover exceeding more than five times the average. No new events, to explain the surge, were announced.

On Tuesday, TVI climbed to a previous resistance level of $0.95, which was also the close for the day. During the session, over 3.22M shares changed hands – this is a significant volume for the company, having in mind that the average for the last 30 days was 594K.

It is interesting whether the stock will be able to go further up beyond the current resistance of $0.95, or will slip down to the support level of $0.85. In case the shares continue to progress, the next resistance levels are $0.100 and $0.105. Will TVI soon manage to pass over the $0.100 level again? We will see.

TVI Pacific released no new announcements over the last days; it means speculative motives are among the possible reasons for the rise of the stock. The other probable explanation is a late reaction to a previously issued news by the company. The latest announcement was from ten days ago when TVI Pacific informed to have commenced drilling on its Tamarok copper-gold prospect.

Perhaps, some traders appreciated this event with a little delay and it might have helped the shares’ advance too.

TVI Pacific is operating in two sectors – the mining and the oil sector. Besides, it continues expanding – in March it completed the acquisition of TG World Energy. Moreover, TVI Pacific is financially solid:

In the end of 2010 it had $8.94 in cash and a working capital of $6.4M;

Revenue jumped to $76.5M for 2010, or by almost 15% versus the figure in 2009;

The net income for 2010 was $11.28M.

The negative facts about the company are pretty few. Among them – the rise in the current liabilities and in the total debt during the last quarter of 2010 in comparison with the previous three-month period.