Gediminas Jasionis
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Silvermex Resources Inc (TSE:SLX) (PINK:GGCRF) Fails To Break The Downtrend

by Gediminas Jasionis Jul 28, 2011
6slx_chart.pngSilvermex Resources Inc (TSE:SLX) (PINK:GGCRF) share price seems to be sticking with the downtrend despite showing some promising price action on Tuesday this week.

SLX tanked 7.9% on the Toronto Stock Exchange yesterday under a trading volume of over 1.6 million, which was significantly above the average 671 thousand. The stock price corrected down after it had initially broken outside of the established downtrend this Tuesday.

Silvermex had no recent news, which is a factor supporting the roll down. The price spike up was likely a cause of short squeezes and basically support bounce at 60 cents. Technically SLX traders still have troubles sustaining the price level above the 200 day moving average.

silvermex_resources_logo.jpgThe price roll down is basically a confirmation of failed breakout. As a consolidation for the bull - a momentum indicator RSI didn't show overbought position before the price tanked, thus the roll down is likely to be slow and there is a significant support at 60 cents.

From a fundamental side the company holds a strong balance sheet with $10 million in working capital and has mildly growing revenues. The drawback is a comparatively large net loss recorded over the last quarter of 2010 on impairment of goodwill, which clearly still influences the share price roll down.

Comments (2)

1. tvsoccerdad
August 03, 2011, 10:14PM

Quotes SHOM profitable pink next monster

2. Guest
July 28, 2011, 12:51PM

Quotes wow, these 2 second look analyses keep getting worse. congratulations on journalistic diarrhea.

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