Gediminas Jasionis
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Balmoral Resources Ltd (CVE:BAR) (PINK:BALMF) Price Rally Dwindles

by Gediminas Jasionis Dec 7, 2011
bar_chart.pngBalmoral Resources Ltd (CVE:BAR) (PINK:BALMF) stock gained 10.4% during the last three days drawing influence from recent news.

Balmoral said on December 5 to have intersected significant mineralization zones. Results from 9 drill holes identified 4 new gold bearing zones. The most notable find was 12.9 g/t gold over 9.3 meters.

For the first time on the property, a short length of bonanza grade mineralization zone was intersected at one point, providing half a meter of 76.4 g/t gold and 1,390 g/t silver. The overall results of phase 2 drilling program are even more encouraging because all of the discoveries were made on only 2% of land.

The findings are promising, but such updates usually cause only a temporary price increase since it will take time and money to turn the ore into revenues.

balmoral_logo.jpgThe 4 day price rally, which was encouraged by the news, already showed the first sign of weakness when a 3% correction was recorded on Tuesday, along with a fully diminished trading volume. The price stayed in its strictly defined channel with only short lived spikes above the 98 cents per share resistance. Swing traders might see an opportunity to short sell if it starts going back to the lower end of the channel at $0.80.

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