Canaco Resources Inc. (CVE:CAN
) (PINK:CANWF) stock price action has shown a bullish momentum over the last trading session and it seems the stock might be spurting further into higher grounds.
CAN share price gained 5.7% on Tuesday under a trading volume of 1.8 million, which was in line with the average turnover. Still, as the price continues to slide higher little by little it starts to get under stock screeners and the potential for larger moves forms more quickly.
The momentum isn't that great yet, but with the recent move the price has taken out resistance at 35 cents per share and that didn't even require extraordinary trading activity. This suggests the current undervaluation might come in handy for the bulls.
The stock price collapsed in mid May when the company announced worse than expected resource estimates and forced many of the shareholders to look for more potential investments. Still, the company has some gold under their property and their properties alone are worth more than the current market cap represents.
The stock might never reach its previous values but it can still perform, especially since the current valuation allows for comparatively high percent moves over short periods.