Largo Resources Ltd. (CVE:LGO
) (PINK:LGORF) stock price tanked to its yearly lows but had no catalyst to continue past the point of support.
LGO dropped to its 52-week low at 22 cents per share on Thursday. The stock price was even lower a couple of years back so a further drop would not be surprising. It could use the support zones though. 20 cents per share looks like a reasonable safety net if the price tanks further down.
The downtrend seems to be easing off right now with 50 and 200 day moving averages starting to flatten. The huge volume during the last price drop is the most disturbing for bulls. There were no news that directly related to the price decrease so the situation isn't likely to turn into selling panic.
Liquidity is a problem as well - intraday chart shows choppy large drops instead of a gradual decline, which mean the stock could as easily bounce up because of the poor availability of shares at different price levels.
The latest news from Largo came out on June 27, and announced an election of David Brace, Wayne Egan and Dr. Allen Alper to the board of directors. This clearly had nothing to do with the recent drop in share price though.