Gediminas Jasionis
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Eastern Platinum Ltd. (TSE:ELR) (PINK:ENPMF) Stock Is in a Promising Technical Situation

by Gediminas Jasionis Jul 14, 2011
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2elr_chart.pngEastern Platinum Ltd. (TSE:ELR) (PINK:ENPMF) stock has a technical situation lined up for a possible price breakout. Traders have pushed the price close to the resistance and an increased trading activity favors the bulls.

ELR share price added 8.4% over the last trading session under a twice the average trading volume of 10.7 million. There‘s still some resistance at 90-92 cents, but considering the significant price action traders could see a breakout during the coming session.

On the other hand, the current price rally is more like a correction after the price went down on the last rally attempt. If the price doesn't breakout it will likely end with a price consolidating as it seems to have found the floor at 80 cents on the longer term downtrend.

elr_logo.jpgThe company had no news recently, thus the price isn't going up on fundamental catalyst. The stock does seem to be oversold though. Eastern holds a market cap of $799 million and the company has a book value of $970 million. Revenues were going up for the past year on a quarterly basis and only went down over the last reported quarter resulting in a net loss for the company.

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