Gediminas Jasionis
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Mega Precious Metals Inc. (CVE:MGP) (PINK:MPRXF) Stock Price Wriggles Around Without Clear Target

by Gediminas Jasionis Jul 12, 2011
mgp_chart.PNGMega Precious Metals Inc. (CVE:MGP) (PINK:MPRXF) had some controversial price action over the past couple of trading sessions, but without real developments there‘s little hope of anything big coming up.

MGP added 36% last Friday on the heaviest trading volume for the past year and the move kind of continued this week as well, although further price increase is unlikely. The stock gapped up on Monday - a common outcome for situations when large scale price action happens before the weekend.

1.06 million shares changed hands on Monday despite the gradual post gap up decline. The trading activity was far beyond the average of 213 thousand shares usually traded per day.

2mega_precious_logo.jpgThe share price had challenged the resistance at 65 cents, but did manage to stay up, possibly because of profit taking. It still remains above the 200-day moving average, but lacks the catalyst to go any further.

The company had no recent news that could have induced the price rally in the first place. Friday‘s early price action reminded of a short squeeze when the price spiked heavily over a short period of time. Odds are in favor of this spike being just another short-term price swing and traders will likely see a decline back to around 50 cents.

Comments (2)

1. Guest
July 12, 2011, 03:35PM

Quotes Yup, It went up because NIA made a recommendation. Just like always, they go up, then come back down when everyone realizes they should cash out.

2. Guest
July 12, 2011, 10:16AM

Quotes Check your facts. No short squeeze. NIA ( newsletter.

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