Gediminas Jasionis
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Selectcore Ltd. (CVE:SCG) (PINK:SLXXF) Price Breakout Still Running

by Gediminas Jasionis Nov 8, 2011
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24scg_chart.pngSelectcore Ltd. (CVE:SCG) (PINK:SLXXF) stock price broke out on Monday and continues to go higher despite the lack of a directly related catalyst.

SCG share price broke out on Monday after breaching resistance at around 24.5 cents per share. This move had a follow up of 10.5% this morning with a small gap up. The trading volume aims to be very heavy and already topped yesterday's 3.1 million. For comparison the average turnover is only 1.1 million.

Despite the heavy price action the company actually had no official news on Friday, when the action started. This suggests that this is a purely technical rally which has somewhat support from older news.

The last update from Selectcore, dated November 3, described an addition of PayPal to their Facebook Social Time platform. The services it provides allow users to top-up prepaid mobile phones of other people, friends or family.

31selectcore_logo.jpgSeveral days earlier, on October 31, the company announced to have entered into letter of intent to acquire some Canadian payment processor. A definitive agreement, which would also disclose more details, is scheduled for November 14, 2011.

The anticipation of this agreement might have its own influence on the stock market and it is clear that bulls are using this to their advantage.

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