Gediminas Jasionis
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PMI Gold Corporation (CVE:PMV) (PINK:PMVGF) Winning Streak Is About to End?

by Gediminas Jasionis May 28, 2011
pmv_chart.pngPMI Gold Corporation (CVE:PMV) (PINK:PMVGF) had the price in uptrend most of the week, ending Friday's trading session with a large gain. However, clouds are already gathering on the buyers' horizon.

PMV stock price added 11% more on Friday and further extended the rally that developed over the week. Trading volume went down though and was only 240 thousand - below the average of 462 thousand.

The drop in volume and the comparatively large scale move up over the last trading session indicate the short-term uptrend is about to expire. The price still passed above the 50-day moving average with the last push, but it should not be taken as a sign of strength in the current situation. PMV price stopped right at the resistance at 60 cents, further hampering the chance of continuation into the next week.

pmi_logo.jpgThe rally was initially induced by a drilling update for Obotan Gold Project in Ghana, published on May 24, 2011. The company reported broad intersections with grades averaging 2.48 g/t gold and reaching up to 19.01 g/t over small lengths in the seven drill holes. Gold was intersected around 150 meters below the previously mined Nkran open pit.

PMI currently has three rigs operating on the property, however, further plans include relocation of two rigs in search for shallower gold deposits on Adubiaso and Asuadi.

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