Gediminas Jasionis
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Northern Gold Mining Inc. (CVE:NGM) (PINK:NTGMF) Shoots Up After One Investor Loaded Up

by Gediminas Jasionis Jan 26, 2012
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ngm_chart.pngNorthern Gold Mining Inc. (CVE:NGM) (PINK:NTGMF) gained 14.3% on Wednesday when one investor loaded up with the stock.

The trading volume was 5.7 million, far above the average of 337 thousand. It easily passed above the 50-day MA and reversed the downtrend. This was the third consecutive day of price rallying and the volume just got stronger, which means that additional momentum should kick in to push it even further.

A morning play is not advised in this case as the price should establish intraday support first. NGM has somewhat of a support at 23.5 cents per share, which could hold in case of retracement and also could work as a breakout indicator for shorts.

Northern announced on January 25 that nearly 5 million common shares of NGM were sold at an average price of 20 cents per share through various facilities of the Toronto Venture Exchange. The purchaser, Mr. Paul Caland, now has more than 11% of the total outstanding shares count and holds warrants that allow increasing his stake up to 13.1%.

northern_gol_logo.jpgWhile this was a cause behind the price increase it still plays an important role in attracting traders attention and momentum could continue to generate. Share price remains close to its lowest values for the year and that amasses bulls as a "buy low" opportunity.

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