Newstrike Capital Inc (CVE:NES, NES message board) (PINK:NWSKF) share price shot up on a technical breakout today after a heavier than normal trading activity from Tuesday drew interest to the stock.
NES started the trading session with a gap up and took off even higher afterwards. The price added more than 7% halfway into trading session, but the liquidity remained comparatively low, with some heavier trading volume recorded only in the morning.
The stock followed the activity from Tuesday when a significant trading volume was detected with a mixed price action. NES basically bounced the support at $2 and broke through resistance at $2.10 which were the causes for price explosion.
It now has a 50 day moving average just below the price which could work as support. Newstrike had no recent news, thus it was a pure technical breakout.
The stock is prone of such sudden price moves. The last time it broke out in April 2011, the stock gaped up on a humongous volume a couple days later. Back then the price action was created by announcement of significant gold finding. The breakout worked as an early messenger back then, possibly created by buying from better informed people.
