Silver and gold in rock samples of Colombia’s Culo Alzado mining area have pushed Orofino stock to weekly resistance level. The penny stock price gained almost 20% on Thursday accompanied by a substantial volume increase. The laboratory test results proved that rocks of the newly recognized gold and silver zone indicate high grades of gold and silver above industry-wide averages. Meanwhile, Orofino Gold Corp. made public historical exploration findings of its mining concessions in preparation for diamond drilling, and although the report is dated back to 1995, Orofino is currently working with the authors of these initial reports to bring them current to 2011, since that license had been forfeited.
The long green candlestick formed in the weekly stock graph may lead traders to believe an uptrend is developing, especially if the resistance level of $0.18 is overcome. Besides, the previous low being higher than before and right on the 20-week moving average could be used for stop loss orders, while the Average True Range’s low figure means the stock is ready to enter some kind of trend. Yet, the best entry point would have been the support level the stock price retraced to ($0.10) on April 12th.
I’m not familiar with trading penny stocks, but the words “gold” and “silver” got my attention when reading about the most popular stocks this morning. Before investing in this kind of stock trading, I will certainly spend more time studying the rules and conditions of penny stocks traded on the Pink Sheets, so that I’m prepared for anything unexpected. Keeping an eye at the same time on the gold company’s ORFG stock is recommended.