Nikolay Tomov
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Prophecy Resource Corp. Stock (CVE:PCY), (PINK:PRPCF) Is This the End of the Retreat?

by Nikolay Tomov Mar 14, 2011
Prophecy_-_Chart_-_14_Mar_2011.pngIt is hardly possible to be always in top shape. Sometimes, after reaching new highs, you need to rest a bit, to gain strength and prepare for your next win. In other cases, you have to fight and struggle - just to defend what you have achieved and avoid losing.

For some days, the shares of Prophecy Resource Corp. (CVE:PCY), (PINK:PRPCF) have been on the downfall on the Canadian Market. Since Last Tuesday, PCY has lost about 15% of its value.

There are no newly released company developments that could have influenced the recent stock performance.

The shares have been bouncing up and down over the last three months. As a whole, the stock stepped back a bit after setting its 52-week high of $1.27 in mid-November.

Perhaps PCY is accumulating strength to start a new climbing up the charts, or it is just fighting to stay as close as possible to its November levels. Somewhat disappointingly, last week the shares felt under the psychological barrier of $1 mark.

Nevertheless, Friday's session gave signs that the current stock retreat is probably near its end. Indeed, PCY finished the day 3% down in comparison with the previous close. Even so, the buyers took advantage over the sellers during the session and the day close was higher than the open. Accordingly, a white candlestick was formed on the chart.

On the other hand, some technical indicators such as MACD bearish cross-over, suggest the decline would, possibly, continue in the coming days.

Prophecy_Res_-_Logo.pngIn case the stock starts climbing up, it could meet resistance at $0.97 and $0.99. In case PCY keeps its fall, then it could find support at $0.91 and further down at $0.79.

On the American OTCQX market, the company's shares have already started to advance, rising 1.5% last Friday.

Several positive developments might come in support of the stock in the future too. Among them - a secured $42M financing completed shortly before New Year; obtaining full mining license from the authorities of Mongolia for the Tal coal deposit; a strategic agreement with Pacific Coast Nickel Corp. pursuant to which the latter will acquire the company's nickel projects by issuing 450M common shares to Prophecy.

Additionally, Prophecy continues to participate in various scientific conferences around the world, thus rising greater interest towards the company and, possibly, attracting new investors.

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