Gediminas Jasionis
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Humongous Increase In Trading Activity For Zodiac Exploration Inc (CVE:ZEX) (PINK:ZDEXF) Remains A Mystery

by Gediminas Jasionis Jun 1, 2011
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zex_chart.pngZodiac Exploration Inc (CVE:ZEX) (PINK:ZDEXF) stock price retreated back down today after attracting a lot of attention with Tuesday's performance.

Zodiac stock shocked the market yesterday with a humongous trading volume of over 30 million, which was at least 26 times above the average of 1.2 million. Such the outbreak was not justified by any reasonable catalyst. Furthermore, the price didn't perform adequately and only jumped up 8% before stopping near the closest resistance of $1.20.

ZEX had no recent news apart from the announcement, made last Friday, of the annual meeting of the shareholders which will be held on June 17, 2011.

zodiac_exploration_logo.jpgThe announcement was not important enough to create a prolonged share price rally. ZEX is currently stuck in a price channel between $1.00 and $1.20. Though this provides profit opportunities for swing traders the situation could soon change in an odd fashion.

The 50 day moving average has recently closed in on the price, and could potentially provide some support or even create a situation similar to ascending triangle pattern. This outlook requires a technical confirmation though and could likely develop over the course of a week or so if things are not influence by Zodiac developments.

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