Yukon-Nevada Gold Corp. (TSE:YNG) (PINK:YNGFF) stock price is slowly approaching a possible turning point at roughly 90 cents per share.The stock has tested the area twice in the recent few months and is up for a third approach. This trading channel should have been accustomed to by swing traders already and thus the breakout is not very likely at this point.
Presently, daily trading volumes are considerably light. Even when the stock spiked a bit after passing the 50-day moving average on Thursday, no extraordinary trading activity was detected. 85-86 cents level, that should be hit this week, could force corrections or short-term consolidation as previous price action depict mild resistance there.
90 cents is the cap for the current price movement, and should be expected to force a reversal on the current uptrend. Lack of changes in trading volume is pointing towards uptrend weakness as well and shows that traders are conservative about the price advance.
The stock has seen a major rally by the end of summer 2010, when Yukon-Nevada raised $25 million through secured note sales. The company has a fundamental background for the current market cap of $573 million, but lacks profitability and is constantly forced to rely on debt/equity financings, which prohibits further advances in share price.
