Hellix Ventures Inc. (CVE:HEL
) (PINK:HLLXF) share price hit a new multi-year high on Thursday, however, the management confirmed it was a purely technical breakout with no fundamental backbone to it.
HEL stock added 63.3% during the latest session, carrying along a trading volume of 199 thousand that was 3.4 times heavier than the average 58 thousand.
The stock even got halted for half the trading session until management comments were available. The company released a public notion stating they are unaware of any material changes that could have attracted attention from traders.
One day earlier, the intraday price movement showed signs of a possible gap up. The price moved up significantly by the end of the trading session giving a green light for bulls to step in. On Thursday, early buying pressure was likely accelerated by short squeezes as well.
While the price gains were extraordinary, the extension to the preceding price rally looked rather natural. In such cases it usually indicated the end of an uptrend and some hard correction should be expected to happen over the next couple of sessions.
The nearly $33 million market cap enforced by this price rally doesn't suit a $1.5 million net tangible worth exploration-stage business with miniscule revenues.