Gediminas Jasionis
1 Vote 0

Majestic Gold Corp (CVE:MJS) (PINK:MJGCF) Continues Uptrending Without News

by Gediminas Jasionis Mar 7, 2012
mjs_chart.pngMajestic Gold Corp (CVE:MJS) (PINK:MJGCF) stock price shot up on heavy volume despite the lack of news. The move could continue because of a possible interest from traders who get this stock on their technical market screens.

On Wednesday MJS hit a new 52-week high of 24 cents per share. The price went much closer to its multiyear high of 28.5 cents per share. What can create another buying wave is the fact that MJS got listed, by several sources, among the most actively traded stocks on the exchange.

The company announced no news before the big move of nearly 14% which suggests the bullish pressure could expire anytime.

Majestic Gold is now trading at 3.8 times the book value and such a valuation looks questionable considering their tough financial situation. On the other hand the $14 million in cash and growing quarterly revenues might be enough to sustain the $154 million market cap.

majestic_logo.jpgIf this price breakout gets enough attention, and it might very well prove itself with all the media coverage surrounding the stock, traders can expect at least a short time heavy price burst. However with no news in support its a risky trade to take.

The intraday price action looked choppy upon the breakout despite the heavy volume. The price moved scarcely throughout the session and got most of the value increase because of the small gap up before the opening bell.

Comments (0)

Type the characters that you see in the box (5 characters).

This is a captcha-picture.