Contributed by: Gediminas Jasionis Hotstocked.com
Date: Apr 12, 2011
Torex Gold Resources Inc (TSE:TXG, TXG message board) (PINK:TORXF) has corrected down after Friday’s runup, which initially promised short-term uptrend continuation.
The most recent uptrend was inspired by news on the resumption of operations on Torex’s Morelos Gold Project in Mexico. The company is dealing with Mexican authorities to get a green light and expects to resume operations as soon as possible. The main issues for the temporary halt of activities were safeguards and security measures.

The stock looks attractive as the share price tends to move in sustained rallies, providing clear turnaround signals – larger than average candle bodies historically have pointed out the upcoming trend reversals.

Trading volume was impressive on Monday, but since it failed to follow up the stock price barely returned to the usual uptrend. Resistances lie at 2.05 and 2.10 per share. It might find some support at the closely following 50-day moving average.

The internal situation likely won’t allow for sustained price appreciation above the identified resistance levels, but a large swing down is not likely to happen either. Traders seem to enjoy the consensus appreciation, albeit it is rather slow. News on resumption of operations are the most anticipated and players are accumulating to gamble on the outcome.

April 13th, 2011
Categories: Uncategorized . Author: caliche